Best Buy appoints new CEO as takeover talks break down
US electronics giant Best Buy has appointed Hubert Joly as its new president and chief executive as it looks to turn its struggling business around.
Joly, the former chief executive of private travel company Carlson, is expected to join Best Buy in early September. The executive has prior experience of reviving failing businesses having led the restructuring and growth of Vivendi in 2002 and 2004. He also drove the turnaround of technology company EDS, now part of Hewlett Packard, from 1996 to 1999.
Joly said: “Building on the company’s strengths and ongoing work, I believe Best Buy has the capacity to write an exciting new chapter in its history. I sincerely look forward to writing this chapter with the Best Buy team.”
Best Buy’s chairman, Hatim Tyabji, added: “Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies.”
Never Miss a Retail Update!The news comes as talks with the Best Buy founder, Richard Schulze, regarding a $9 billion takeover approach broke down.
Best Buy said that Schulze had rejected an offer to conduct due diligence on the company’s non-public financial information. The company said its board had put forward a proposal that included a “routine and customary request that Mr. Schulze agree to certain protections for Best Buy and its shareholders.”
However Schulze said he was “disappointed and surprised” by the ending of the discussions. In a statement he said: “The board initially proposed an 18-month standstill, which was completely unacceptable in light of the fact that urgent change is needed at Best Buy and value is eroding further every day that change is not effected.”
