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Best Buy buy 50% of Carphone Warehouse...

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  • 10-05-2008 2:10am
    #1
    120_Minutes
    Registered Users Posts: 4,706 ✭✭✭


    ...and whats it to do with broadband?

    from rte.ie:
    Thursday, 8 May 2008 12:10

    Carphone Warehouse, which has over 50 outlets in Ireland, today said it had sealed a £1.1 billion sterling investment from US group Best Buy to launch a joint venture retailer across Europe.

    The deal will see Best Buy take a 50% stake in Carphone Warehouse's high street chain. The pair already have a trading relationship in the US.

    Carphone Warehouse will retain its broadband operation and plans to use the cash made from the transaction to further develop its fixed line business and reportedly fund a war chest to snap up struggling rivals.
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    The company sells one in every four mobile phones in Ireland. Its CEO in Ireland, Stephen Mackarel, said the new company will allow it to expand its offering in the electronics sector, which is the fastest growing category in the Irish retail sector.

    Carphone Warehouse Ireland said it will use the proceeds of its part sale to invest in broadband infrastructure here.

    It is also thought that some of the money raised may go towards a potential bid for the UK operations of the broadband firm Tiscali, which has been put up for sale with the deadline for first round bids understood to be today.

    Carphone Warehouse confirmed it was looking at Tiscali, but said it was 'early days'.

    Under the deal with Best Buy, the Carphone Warehouse and Phone House brands will remain high street stores, but the new venture will see larger retail park-sized consumer electronic Best Buy stores launch across both the UK and Europe.

    The two companies have already been collaborating to bring Geek Squad, a 24-hour computer support task force, to European markets, while Carphone Warehouse has also been working with Best Buy on its US mobile phone offering.

    Best Buy employs around 150,000 staff across 1,314 stores across the US, Canada and China, producing annual revenues of $40 billion.

    The deal, which has yet to be approved by shareholders, will see the Carphone Warehouse retail management remain in place.


Comments

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    #2
    Cabaal
    Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,481 Mod ✭✭✭✭Cabaal


    CPW might even advertise its broadband in Ireland in a bigger way, you don't hear much about it these days other then talktalk.ie


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    #3
    great
    Closed Accounts Posts: 140 ✭✭great


    bestbuy are a great electronics store.. hope that 1 comes ireland


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    #4
    Saruman
    Registered Users Posts: 11,389 ✭✭✭✭Saruman


    Watch out Currys/Dixons if they do come here,.. Best buy themselves that is... Although i could not care less about them owning half of Carphone warehouse.


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