Best Buy (BBY) Gets Some Buyout Buzz
Tweet
Share
E-mail
Get Alerts BBY Hot Sheet
Join SI Premium – FREE
Best Buy Co. Inc. (NYSE: BBY) shares are seeing an upside bias early Wednesday following reports in the StarTribune discussing private-equity interest in the company.
Despite clear troubles at the electronics retailer due to the onslaught from online retailers like Amazon.com (Nasdaq: AMZN) and others, Best Buy still generated $1 billion in cash last year and has relatively little debt, the article highlights.
A takeover of Best Buy "is on a lot of people's radar screens," said Jeremy Brunelli, a retail analyst with Consumer Edge Research in Stamford, Conn. "Best Buy is an obvious candidate. There's a definite buzz going on."
In addition to possible private equity interest, the article suggests hedge fund manger David Einhorn of Greenlight Capital, who owns 7.7 million shares, could also be interested. This would seem far-fetched as Mr. Einhorn, unlike fellow hedge fund operator Eddie Lampert, has never shown interest in owning a entire company, let alone a retailer.
Wednesday's article from the StarTribune is creating a little buzz in the market early Wednesday, but with Best Buy mentioned numerous times in the past as a target -- and the speculative nature of the article -- it is unclear if the upside has any legs.
Read the rest of the article here.
Despite clear troubles at the electronics retailer due to the onslaught from online retailers like Amazon.com (Nasdaq: AMZN) and others, Best Buy still generated $1 billion in cash last year and has relatively little debt, the article highlights.
A takeover of Best Buy "is on a lot of people's radar screens," said Jeremy Brunelli, a retail analyst with Consumer Edge Research in Stamford, Conn. "Best Buy is an obvious candidate. There's a definite buzz going on."
In addition to possible private equity interest, the article suggests hedge fund manger David Einhorn of Greenlight Capital, who owns 7.7 million shares, could also be interested. This would seem far-fetched as Mr. Einhorn, unlike fellow hedge fund operator Eddie Lampert, has never shown interest in owning a entire company, let alone a retailer.
Wednesday's article from the StarTribune is creating a little buzz in the market early Wednesday, but with Best Buy mentioned numerous times in the past as a target -- and the speculative nature of the article -- it is unclear if the upside has any legs.
Read the rest of the article here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- The Biggest Winners Don't Compete in a Category. They Rewrite It. One Company Is Betting It Can Too.
- Lionsgate faces activist pressure to sell itself in ‘AI era’ - Semafor
- Truist Securities Upgrades Best Buy (BBY) to Buy, 'AI may turn “trade” into investment'
Create E-mail Alert Related Categories
Hedge Funds, Private Equity, RumorsRelated Entities
Edward Lampert, RBS Partners, ESL Investments, Greenlight Capital, David Einhorn, Hedge FundsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
