They're probably fighting right now over price and which PE firm is ponying up what amounts for % ownership. These are the remaining issues. It's much easier to turn a company around going private...and there is plenty of value in the company. The daily beatings on Wall Street undermines confidence on a daily basis - the board, Schultz, PE partners and Jolly all know this. Jolly's last turn around was a private company in a heavily commoditized business with terrific results.
I think book value is above current stock price, they spend $250 million/year in dividend payments which won't happen after buyout, free cash flow of between 850-1.02 billion.....this ain't circuit city and it ain't radio shack. It's wounded, but it's far from broken. The blood is in the water and every day the stock drops, Schultze and his partner's smile widens. This is a no brainier for all involved.
I suspect the board is trying to hold him to $24-$26 and Schultz is looking at $17-$20 and the board will settle for somewhere in the middle.....unless the board knows they had a record breaking Black Friday weekend - probably not the case. I would be surprised if the board allows the market to open and have the stock drop further......they have rivaled HP in their horrible management of this process so far and Wall Street can't wait to punish them further in the face of uncertainty behind management. All boats rise with a buyout.
Something that seems to be forgotten in all of this, is that Schultz knows all of the District Managers, so all he has to do is call them to find out how things are going. With that said those same managers have probably been told to not say a word, but then again at least some, looking forward may provide Schultz with some "feel." A tricky situation all around. I think BBY will have an advantage in perhaps 6 months when AMZN will have to charge everyone sales tax (I am assuming that Congress will act). And they have the stores for either pick-up or same day delivery, so they will be on a relatively level,playing field.
Some of the big investors are not interested under 30. with projected EPS of 2.80 for next year FV is around 30. They are growing rapidly online. I purchase product from BBY online all the time because of their customer service and advise from staff. Tried to shop at Walmart and tried to get product info from them and they ridiculed me and told me that They are not able to offer expertise and I should research myself before I buy from them, why would I do that when I can buy from BBY at the same price and use their expert advise. I am hoping for no buyout and Joly to succeed, that will take it to 40. I am a retail consultant and love what he is doing and have faith in him.
Let the naysayers cry here that our man Schulze will never buy the company they are just burying their heads in the sand, Longs are going to cash in Big $ My 100 December $16 calls that I bought last week after the big drop will make me Massive $$,$$$.$$ I love watching them panic thinking at anytime the buyout announcement will come out, $20-$24 is where I see it. :0)
Doesn't matter. Schultz has 20% stake and three PE firms licking their chops to get this for pennies on the dollar. The firms behind it have retail experience with one offering to provide all the financing....Schultz wants more than 1 to limit control issues. The profits that can be generated by a $48 billion dollar company are enormous. BTW, Amazon doesn't make any money either by selling products at $1 over cost......and it wont't continue forever.
Bby has a good balance sheet, they will make their money in the last 3 months and Schultz and his boys are getting it cheap for $20. The board's management cut this stock by 50% and there will be holy $&@-/ if they don't deal. FYI - top shareholders have been pushing the board along with Jolly to get to this point. It's happening.....