addressed to best buy's board, richard schulze says quote, "bold and extensive changes are needed for best buy to return to market leadership." he is proposing to buy out the company, using his own money, private equity funds and some debt. so would going private be the right strategy for best buy? >> it may make sense for best buy to be a privately held company, especially if you have the backing of private equity. with retail and turnaround experience. frankly, this company has a lot of work ahead of them to stay

best buy's founder and largest shareholder richard schulze offering a plan today to take the company ivate. the proposed buyout at $24 to $26 a share boosting the stock higher today. currently up about 11.5%. but is schulze's deal for real? let's bring in michael packer senior analyst at web bush securities. glad to have you on the show today. does the debt finance get done? is that the biggest hurdle here? >> yes, i think the price implies that they need to raise about $8 billion total. just at the low end of the range. schulze is talking about putting in a billion. so he needs to raise $7 billion in equity and debt. there ebitda is about $3 billion and declining. so i would guess maybe a stretch if he could raise $6 billion in debt. and that means he needs another billion in equity. i think more than likely $5 billion in debt he needs $2 billion more in equity. you notice he talked about conversations with private equity firms but he didn't say that any were committed. that's the reason he mentions due diligence in his letter. obviously schulze was chairman just a couple of months a

richard schulze offered between $24 and $26 per share.est buy is trying to avoid the state of rival at prominent retailer circuit city, which went bankrupt in 2009. >>> gibson guitar will pay a $300,000 fine for illegally importing wood from overseas. federal agents raided the last year. by agreeing to the settlement, gibson will avoid criminal prosecution. >>> and if you ever need a cupcake on the run, an illinois bakery can certainly help you out. sprinkles cupcake shop installed a cupcake atm on the patio of its bakery. anyone with a sweet tooth can swipe their credit card and grab a cupcake of their choice. the machine can hold up to 500 cupcakes at a time. that sounds like an idea that needs to make its way here. >> to cbs, i know. you know, they always find a way to give us more of exactly what we don't need, right? >> i know, right? >> love to see the fight at that machine. >> especially in this building. >> boom! ashley morrison here in new york. ashley, good to see you. thank you so much. >>> when we come back, we'll have your we

addressed to best buy's board, richard schulze says quote, "bold and extensive changes are needed for best buy to return to market leadership." he is proposing to buy out the company, using his own money, private equity funds and some debt. so would going private be the right strategy for best buy? >> it may make sense for best buy to be a privately held company, especially if you have the backing of private equity. with retail and turnaround experience. frankly, this company has a lot of work ahead of them to stay competitive and stay relevant in the eyes of consumers. >> it's a moment of truth for the retail electronics chain schulze founded in 1966. >> reporter: part of best buy's problem is so-called showrooming. that's when customers browse the store, but actually place their orders elsewhere, often at online sites like amazon. an even bigger issue is the enormous size of most stores, a relic of a bygone era. >> in the early part of the 90's through the early part of the 2000s. consumers had no problems. they were shopping in stores for tvs, video games, cds were a big part of th

earlier this month, the founder of the firm, richard schulze made a public bid to take the company private. now, best buy's board is asking him to reveal the names of private equity firms that would back the buyout. there could also be a buyout in the works for video game publisher electronic arts. the company makes the popular "sim city" and "battlefield" games, and is reportedly in early-stage talks with several private equity firms. shares of the company rose 72 cents to $13.81, providing some relief for investors who've watched the stock tumble to historic lows in recent weeks. now, let's switch from retail to some other sector movers. cisco systems was the biggest gainer in the dow today, up nearly 10%. as we reported last night, the networking company reported better than expected sales and profits, and a big dividend hike. cisco's upbeat comments helped lift shares of other networking stocks like f-5 networks, riverbed technology, and alcatel-lucent. all jumped more than 4%. home-building stocks also rallied today on that news that building permits surged in july. pulte group rose t

richard schulze offered between 24-$26 per share. best buy is trying to avoid the fate of rival electronics retailer circuit city which wt bankrupt in 2009. only time will tell. >> >> on to the race for the white house, the two major candidates trade barbs on the economy. president obama continues to criticize the proposals of mitt romney saying they lead to higher taxes for the middle- class and lower taxes for the wealthy. at a fund-raiser the president referred to the republican plan as romney hood, like robin hood in reverse. >> how about a little bit of weather and i hope you like it or not because we have triple digits across the board. >> probably the hottest streak this summer. you will be able to find cool air at the coastline and we still have a sea breeze of maybe even some fog at the beaches. temperatures will be heating up by the afternoon. sunshine and up into the '90s we go. a lot of seventies and eighties around the bay. to the coastline, becoming mostly sunny with temperatures in the '60s. a triple digits are on the

richard schulze has been talking about buying out best buy, but the company and its founder had been at odds over how to proceed. once he starts his review of financial information, schultze will have 60 days to make an offer. if rejected, he will have to wait until after the holidays to make another one. word that schultze remains in the hunt helped shares gain 3.2% today but they remain well below the price range schultze has mentioned as a possible bid, $24 to $26 per share. best buy closed below $18 tonight. a much different retailer, tiffany earned one penny less than estimates. sales fell in asia and in the u.s. the company also cut its financial forecast for the second straight quarter, but anticipates margins to improve during the holidays. shares jumped 7.2% despite the disappointing earnings. it's warning was not as bad as feared, and it continues to move forward with store openings. th is a the and a half mon high for tiffany shares. it's been more than 12 years since the deal of the century, and three years since it was unwound, today a.o.l. announced two efforts to pay s

the drop takes shares to their lowest level since early august when founder richard schulze annound an effort to take the company private. today, the company announced the hiring of joly. schulze said he was disappointed buyout takes have ended. meantime, it's slow going for the renovation at home improvement retailer lowe's. the company has been working to better compete with home depot. quarterly earnings were a nickel less than the average analyst estimate, and they were down from a year ago. the results were held down by fewer promotions in may, slower shopper traffic on memorial day weekend, leading to bigger price cuts to move merchandise. that hurt profit margins. shar fell 5.8% oheavy lume. lowe's cut its financial outlook for the rest of the year, even as august sales have picked up. healthcare continues seeing merger activity as the insurance industry looks to diversify and grow. health insurance provider aetna is the buyer, offering to purchase coventry health for $5.7 billion in cash and stock. based upon tonight's closing prices, coventry shareholders would get $42.08 per

best buy founder over richard schulze over a potential buyout of the company. the stock closed fractionally to the downside with little news to drive investors in either direction. the dow dropped three points for the first loss in three sessions is. >> as we mentioned earlier cattle ranchers facing another blow from the drought and it could affect you at home. first up, the supply of hay feed is the lowest since 1976. it is getting so expensive ranchers can't afford it. how do they keep themselves from starving and keep themself in business? let's ask james bledsoe, a cattle rancher in colorado. thanks for being with us. is it really that bad that you can't feed your cattle? >> hey, tracy, thanks for having me. yeah, it is getting pretty rough. what we do, we're a traditional cattle ranch and on an average year we have a lot of range land and we feed the cattle on the range land. you have a fixed cost, the range, the grass grows and get your adequate nutrients but as this year things have changed and we have to go out and find different feed around which unfor

best buy founder richard schulze wants his company back. on the tweet question. what does schulze see in the company that shoppers and short sellers do not? tweet us @cnbcsquawkst. we'll get some answers in a moment. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. >>> squawk on the tweet on this monday morning. best buy founder richard schulze wants his company back, offering to take it private. what does he see in the company that shoppers and short sellers do not? he might finally get a tv at a price less than amazons with his owner discount versus employee discount. benjamin writes the founder sees a way to monetize people using the store as amazon's show room. and ernest tweets he

the company has been in the spotlight as founder richard schulze has been attempting to take over the expect earnings per share of 31 cents on 6.10.62 billion in revenue. ashley: dell, the computer maker could give us insight into the global consumer. investors have not been so kind to the name with with the stock hitting a 52-week low earlier this month. by the way analysts expect the company to report earnings per share of 45 cents and revenue coming in at $14.66 billion. liz: the number one thing to watch tomorrow will be a speech by atlanta federal reserve bank president dennis lockhart. the markets have been hanging on every single word and preposition, you name it the fed has said and exactly as a voting member and advocate of more quantitative easing, more large-scale asset purchases his comments could very well move the markets. so you really have to watch for that. plus as sandra smith mentioned you could watch the globex trading tonight in the grain ma

. >>> founder richard schulz says he wants to buy the company and take it private. the deal would value the big bucks store at more than $8 billion. best buy has been struggling as more people go online to buy their electronics. >>> trading on madrid's stock exchange stopped for five hours today because of a blackout blamed on a technical glitch. the spanish government is trying to avoid asking european leaders for a bailout. but its debt is rising. and unemployment in spain is nearing 25%. >>> night -- knight capital has found a white knight. they are giving them enough to continue to operate. a software glitch sent over 100 stocks reeling. that's your money watch. for more, go to cbsmoneywatch.com. in new york, i'm alexis christoforous. >>> it took only 9.63 seconds for jamaican sprinter to prove he is still the fastest man on the planet. olympic fans are still talking about the record-breaking race. monica villamizar reports for wjz from the summer games in london. [ singing ] >> there's still a jolt of excitement, running through the olympic park. after the worl

first up, best buy founder richard schulze is one step closer to taking the struggling retailer privateey are forming an eninvestment group. 60 days after starting to finalize the offer. >>> aol will pay 5 clin $15 special cash dividend to shareholders. they will buy back $600 million of stock under an accelerated stock repurchase agreement. >>> viacom adding commercials to maintain revenue. recent data from nielsen says nickelodeon and comedy channel boosted ads by 9% since first half of the year. >>> they will collect $1.95 billion in extra fees this year. recent study hotels will charge access to the internet, telephone and business centers. >>> hp launch as new web app, social fix to turn the facebook time into custom note toe book. hardcover books will cost, 28.95. that is today's speed read [buzzer] david: might as well use all the seconds. you did it. you go. tracy, this is the first time. corn and soybean prices fall from the peak as concerns from the midwest drought lessen. this commodity guru says investors focusing on agriculture are missing the number one market. we'll get i

one day after best buy founder richard schulze proposed a plan to take the big box private.p. amazon already taking on the likes of apple, netflix, best buy and now zynga. so with amazon no longer going the route of everything but the farm is the quest to take on zynga a good move for the e-commerce jaegiant. and apple looking to clock in with yet another new all-time high as the tick titan just yesterday announced it's dropping youtube from its standard ios6 and charging ahead with the battle against samsung. how much longer can it hold the reign at the top? plus you hear all the hype about the excitement over the olympic games. but what about the economic drawbacks? we're going to take you live to london for an inside look at the downside to hosting the olympics. in just a few moments. first a quick market flash. brian sullivan is back at hq. >> a developing story out of new skin enterprises. nus is the ticker. the stock is down 10%. here's the story. ll known short selling firm cintron research essentially saying that it thinks that nu skin's china business could be compl

richard schulz, former founder and chairman of best buy made an offer to acquire the company between26 a share in cash. now it is an offer with a lot of, well, you can see what's going on there but he has a highly confident letter from credit suisse to provide debt financing. he will roll about $1 billion of stock, he owns roughly 20% of this company into this potential offer. it's kind of a complicated offer that he needed to make and andrew may be more familiar with minnesota takeover law but four-year holding periods for significant owners and needs the permission of the board to both conduct diligence, but also to form a group, and so needed to come public with this offer in this timely manner, and then perhaps once he gets that permission if he does from the board will be able to tell us who those conceivable investors are. best buy a company in some distre distress, many would say and this is quite a large deal, regardless of whether he rolls in $1 billion of his equity stake in the company, it would be about $8.6 billion in terms of the overall purchase price at between 24 and

closely given declining sales, management changes and yes the controversy surrounding founder richard schulzet proposal. >>> computermaker dell and software company intuit release their numbers. >>> and urban outfitters earned 42 cents a share in the latest quarter, nine cents above estimates with its sales rising as well, becky. >>> we've been talking about facebook's peter thiel selling the majority of his shares, the sale was planned before facebook's ipo. thiel is a board member, he sold 20.1 million shares after the ipo lockup period expired and distributed another 2.2 million shares to investors. he still holds a stake but only 5.6 million shares. at this point he has seen a massive, massive payout, and i think he's seen something like $1 billion that have come in as profits on this, he was one of the very early investors. as we were just saying between the sales and the sale of shares before the ipo he made about $1 billion combined. we've been getting tweets all morning long asking if you would be a buyer of facebook on this point and what do you think of thiel's actions here as a dir

best buy shares are climbing after the company gave founder richard schulze the go ahead to pursue hist plan. he already owns 20% of the electronic retailer's stock. he can form an investment group with private equity sponsors to make a bid. >>> navistar international shares are on the ride after naming former textron executive lewis campbell. he replaces the danielle ustee. no reason why he was given why he left the company. >>> more pain at the pump for drivers. according to "the lundberg survey" the price of a gallon of regular gasoline is now $3.76. that's a 7 cent jump over the past two weeks. that is the latest from the fox business network, giving you the power to prosper. . . nicole: while headlines surrounding the election focused on medicare lately the economy is still the top issue for most voters. peter barnes is in washington. he has all the details. peter barnes, what do you think? >> that's right. the new "washington post/abc news poll" finds that the economy, surprise, surprise, continues to be the dominant factor in the presidential race even as the media focus on a lo

richard schulze has been talking about buying out best buy, but the company and its founder had beenbid, $24 to $26 per share. best buy closed below $18 tonight. a much different retailer, tiffany earned one penny less than estimates. sales fell in asia and in the u.s. the company also cut its financial forecast for the second straight quarter, but anticipates margins to improve during the holidays. shares jumped 7.2% despite the disappointing earnings. it's warning was not as bad as feared, and it continues to move forward with store openings. this is a three and a half month high for tiffany shares. it's been more than 12 years since the deal of the century, and three years since it was unwound, today a.o.l. announced two efforts to pay shareholders: a special dividend, and a faster stock buyback plan. the special dividend will be $5.15 per share, payable in cash to shareholders of record on december 5. at the same time, a.o.l. has accelerated a stock buyback plan, re-purchasing $600 million of stock. the money for these comes from a.o.l.'s $1.1 billion sale of some patents to micr