Best Buy Co. Inc. is selling its 50 percent stake in its European joint venture to its London-based partner Carphone Warehouse Group for about $775 million in cash and stock, the Star Tribune reports.
Reuters says that's less than half of the $2.1 billion the Richfield-based consumer electronics giant paid for the stake five years ago.
Chief Executive Officer Hubert Joly, who wants to focus on fixing Best Buy's core business in the U.S., said the transaction will streamline its business, strengthen its balance sheet, and improve its return on invested capital.
“Each international market is different and the sale of our European operations should not suggest any similar action in our other international businesses," Joly said in a news release. Best Buy still operates stores in Mexico, Canada and China.
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