News
Best Buy Buys into Carphone Warehouse and Targets Europe
(08 May 2008, BWCS Staff)UK-based mobile phone retail chain Carphone Warehouse has announced a £1.1 billion tie-up with US group Best Buy. Together the pair will launch a joint venture company aiming to target the mobile phone retail market across Europe. Under the terms of the deal, Best Buy will take a 50% stake in Carphone Warehouse's string of high street shops. The two already work together in the US.
The British company said that it will retain its broadband operations in the UK and hopes to use some of the investment money to develop this part of its business. It may even use the funds to buy up smaller rivals as well as mounting a possible bid for the UK wing of Tiscali's operations. Carphone Warehouse has confirmed it is looking at Tiscali, but said it was "early days".
While the company will maintain its UK-based Carphone Warehouse and Phone House brands, the new joint venture will see launches of larger retail-park electronic stores branded under the Best Buy name across Europe. The new outlets are set for roll-out next year, though some may appear in the UK before then.
The two companies have already collaborated over a venture called Geek Squad, a 24-hour computer support task force, which they recently set up in Europe.
The new deal will enable Carphone Warehouse, currently comprising around 2,400 retail stores, to enlarge and capture a bigger slice of the consumer electronics market, while it also provides Best Buy with a platform to expand into Europe - a market worth around £89 billion.
Back