This Best Buy-out Could Flop

Before you go, we thought you'd like these...
Before you go close icon

Recently Richard Schulze, the founder, former chairman, and largest current shareholder of Best Buy, announced intentions to lead a buyout of the electronics retailer for between $24 to $26 a share. Shares spiked on the news initially, but have trailed off in recent days. Currently trading below $20, a deal done in the middle of the announced range offers meaningful upside for investors, but as Brenton and Austin discuss in the following video, there are plenty of reasons why this buyout could flop.

Instead of rolling the dice in hopes of a buyout, investors would be better served finding retailers with a visible path to future growth. To learn about two retailers with especially good prospects, we invite you to take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool owns shares of Best Buy and RadioShack. Motley Fool newsletter services recommend hhgregg. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners