Dive Summary:
- Free cash flow will be cut to $500 million dollars this year from projections of up to $105 million dollars in November in response to a 1.4% decrease in sales in the last quarter.
- Schulze is likely looking for more than promotions to increase revenue and will likely want to see more in the lines of earnings before making an official offer according to Michael Pachter, an analyst at Wedbush Securities.
- Schulze made a preliminary offer on shares for the company but secured a financed deal that gave him more time to observe the company.
From the article:
"...Best Buy advanced 5.4 percent to $12.21 at the close yesterday in New York. The shares dropped four of the past five years, including a decline of 49 percent in 2012.
Schulze, a former chairman, proposed offering $24 to $26 a share for Best Buy in August and later that month reached an agreement that let him conduct due diligence and present a fully financed offer within 60 days..."
