To deal or not to deal

  • Updated: August 6, 2012 - 9:30 PM

 

Best Buy Co. shareholders may get to consider a purchase offer from company founder Richard Schulze.

PROS of accepting the offer

$24 to $26 a share represents a 20 to 30 percent premium over Monday's closing price of $19.99.

Investors can receive cash now vs. waiting for the struggling company to fix itself.

Schulze could eventually boost his offer close to $30 a share.

The company may continue to struggle, and the stock price could fall further.

CONS of accepting the offer

Investors don't know how Schulze will fund the deal.

Best Buy has yet to release its growth plan.

The company has not named a permanent CEO. A new CEO could inspire confidence in a long-term investment.

The company commands strong assets that eventually could lift its stock price, including $2 billion in cash and strong growth in China.

THOMAS LEE

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