Best Buy sells off Carphone Warehouse stake, exits Europe

Best Buy sells off Carphone Warehouse stake, exits Europe
Large U.S. retailer Best Buy has sold off its Carphone Warehouse stake, exiting Europe after a failed attempt to expand outside of its home base.

The company sold its 50 percent stake for $775 million, about 37 percent of what it paid for it 5 years ago.

"The sale allows management to eliminate the European distraction, as it has been a much-debated topic in the investment community for some time," JP Morgan analyst Christopher Horvers said. "It also fully unwinds an ill-timed conquest into Europe."

Best Buy paid $2.1 billion in 2008 for the 50 percent stake in the independent mobile seller's retail operations. The company had aspirations to put Best Buy stores across Europe, but that plan did not work out, thanks in great part to the ongoing recession in the Euro nations.

Written by: Andre Yoskowitz @ 1 May 2013 1:15
Best Buy Europe Carphone Warehouse Best Buy Mobile
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  • 1 comment
  • BlurrTechnicolour

    Like we would need something like Best Buy in europe since we have enough similar enterprises here.
    Just a weak excuse to blame it on the recession.

    1.5.2013 22:54 #1

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