The Electronics retail mogul, Best Buy, has named Hubert Joly, former head of a global hospitality company as the new CEO and President of the company on Monday. The decision comes a day after the company rejected an offer by founder, Richard Schulze, to acquire the company for $9.5 billion with a small group of private partners.
Schulze told Bloomberg that he was "shocked by the company's statement." RBC Capital Markets analyst Scot Ciccarelli told Reuters, "It is clear to us that there is quite a bit of acrimony between Mr. Schulze and the board of directors and that this distracting saga isn't close to being finished."
Schulze has a 20 percent stake in the company, making him the largest shareholder.
Schulze was CEO and president of the company until June, Now, Joly, who was the former CEO hotel operator Carlson Cos., will start his term in September, replacing interim CEO and president Mike Mikan from the Minnesota-based Best Buy.
The 53-year-old Joly told reporters at Bloomberg on Monday "This company is a great American icon. It is a $50 billion company with enormous assets and a great brand name that can innovate and grow in this market."
Joly said that he was hopeful for the company's success despite falling stocks, telling Bloomberg that the companies various outlets across the country, in addition to the online services were "enormous assets" and will surely help stimulate growth.
Last week, company shares in New York fell to $19.35, which means a four percent decline; later the shares dropped a total of 13 percent.
Hopefully, Joly's inauguration will harbinger better days for the company, Brian Sozzi, analyst at research firm NBG Productions told USA Today, "Joly is a rogue agent Sozzi...He comes in and fixes companies and then leaves."
Best Buy will disclose its reports for the fiscal second-quarter Tuesday. According to the company, Best Buy's value is currently at $8.84 billion.
