Best Buy Gives Up on European Expansion
Best Buy will sell its 50% stake in Carphone Warehouse back to the company for about $775 million. Best Buy partnered with Carphone Warehouse back in 2008, with Best Buy investing in Carphone Warehouse's European operations and Carphone Warehouse investing in Best Buy's U.S. operations. The original intent was to allow each company to expand in the other's market. The partnership never bore any fruit. Best Buy bought Carphone Warehouse out of its U.S. joint venture in 2011. The deal is now coming full circle, as Carphone Warehouse will buy Best Buy out of its European stake, leaving Best Buy to focus on its U.S. operations and Carphone Warehouse to focus on its U.K. operations. Best Buy has been hit by sagging sales at its U.S. big box retail stores, though it has opened a number of smaller, mobile-focused outlets. Carphone Warehouse today also said it would close all its stores in France.
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