Tuesday, April 30, 2013

Best Buy will sell its half of European arm to Carphone Warehouse for $775 million

As Best Buy attempts a return to financial well-being, it's decided to sell the 50 percent share it still owns in Best Buy Europe to fellow joint venture partner Carphone Warehouse. The price is set at about 500 million GBP ($775 million, mostly in cash) and is expected to close by June. Best Buy paid $2.15 billion for its share of the business back in 2008 and the first branded store opened in 2010, but it was already looking for a way out by 2011. That's when it closed its UK stores and paid Carphone Warehouse $1.3 billion for its share in the US Best Buy Mobile business. Reporting the joint venture as discontinued operations for its next fiscal year will cause Best Buy to take a $200 million charge, and it's tossing Carphone Warehouse another $45 million to satisfy outstanding obligations like closing the Global Connect JV the two started in 2011. There's no word on any moves for its business in Mexico, Canada and China, and CEO Hubert Joly says this sale "should not suggest any similar action" elsewhere.

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Source: Best Buy

Source: http://feeds.engadget.com/~r/weblogsinc/engadget/~3/9Lw3_yPPros/

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