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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) DECEMBER 16, 1999
BEST BUY CO., INC.
(Exact name of registrant as specified in its charter)
MINNESOTA
(State or other jurisdiction of incorporation)
1-9595 41-0907483
(Commission File Number) (IRS Employer Identification Number)
7075 FLYING CLOUD DRIVE 55344
EDEN PRAIRIE, MINNESOTA (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: 612/947-2000
NOT APPLICABLE
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On December 16, 1999, Best Buy Co., Inc. and Microsoft Corporation announced
their plans for a comprehensive strategic alliance that encompasses broadband,
narrowband, in-store and online efforts. The parties signed a letter of intent
that provides for significant joint marketing in Best Buy's retail stores,
online and through print/broadcast vehicles, profit sharing, the promotion of
Best Buy.com (a wholly owned subsidiary of Best Buy Co., Inc.) to the 40 million
users throughout Microsoft Corporation's properties, and technology assistance.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
c) Exhibits
The following is filed as an Exhibit to this Report.
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Exhibit No. Description of Exhibit
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<S> <C>
99 Press Release issued December 16, 1999
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
BEST BUY CO., INC.
(Registrant)
Date: December 20, 1999 By: /s/ Allen U. Lenzmeier
-----------------------------------
Name: Allen U. Lenzmeier
Title: Executive Vice President and
Chief Financial Officer
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Exhibit 99
FOR IMMEDIATE RELEASE
BEST BUY & MICROSOFT AGREE TO FORM
COMPREHENSIVE STRATEGIC ALLIANCE
NATION'S LARGEST HOME PC RETAILER AND WORLDWIDE SOFTWARE
LEADER TO JOIN FORCES
REDMOND, Wash., Dec. 16, 1999 -- Best Buy Co., Inc. (NYSE: BBY) and Microsoft
Corp. (Nasdaq: MSFT) today announced their plans for a comprehensive strategic
alliance that encompasses broadband, narrowband, in-store and online efforts.
The parties signed a letter of intent that provides for significant joint
marketing in Best Buy's retail stores, online and through print/broadcast
vehicles, profit sharing, the promotion of BestBuy.com to the 40 million users
throughout Microsoft's properties, and technology assistance.
Under this alliance, MSN(TM) Internet access and Microsoft's full range of
connectivity solutions will be demonstrated and sold at the more than 350 Best
Buy stores in the U.S. and through BestBuy.com. In addition, Microsoft plans to
invest $200 million in Best Buy common stock.
"This alliance positions Best Buy as the preferred click and mortar provider of
entertainment and technology products and services to US consumers," said Best
Buy Chairman & CEO Richard M. Schulze. "Best Buy annually serves over 200
million customers and sells more than 12.5 million connected devices. A deciding
factor in forming this alliance is Microsoft's 'Everyday Web' vision, making the
web as prevalent as the telephone and even more useful in our customers' daily
lives. Together, we create a strong team fostering our mission of improving
people's lives by making technology affordable and easy to use."
The alliance will combine two of the most recognized consumer brands and link
the worldwide leader in software for personal and business computing with the
nation's largest digital technology retailer. The companies will utilize their
complementary sales and distribution channels to co-market their products and
services. The alliance will also affirm broader efforts by Microsoft to expand
distribution channels to grow subscribers.
- MORE -
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PAGE 2 - BEST BUY & MICROSOFT FORM ALLIANCE- 12/16/99
Bill Gates, chairman & CEO of Microsoft, stated that, "At Microsoft, we're
designing products and services that empower our customers through great
software -- any time, any place and on any device. Best Buy's vision as the
provider of products and services at the intersection of technology and life
fits extremely well with our 'Everyday Web' strategy. As the largest retailer of
PCs to the home user, their ability to sign up more than half a million
subscribers in five months through in-store instant rebates illustrates the
power of the Best Buy brand."
As part of the alliance, Best Buy and BestBuy.com will receive prominent and
preferred placement across Microsoft properties, including MSNBC, the
Expedia.com(TM) travel service, Hotmail(TM) Web-based e-mail service, WebTV
Network(TM), and the newly launched MSN eShop online shopping service. As a
major advertiser on the MSN network of Internet services, BestBuy.com will reach
a broad Internet audience. Microsoft's strength in audio and video streaming
technology will enhance the Best Buy customer experience online.
With this alliance, Microsoft and Best Buy will be well positioned to provide
the tools to help millions of consumers get connected and get the most out of
the Internet to make the "Everyday Web" a reality.
Statements made in this news release, other than those concerning historical
financial information, should be considered forward looking and subject to
various risks and uncertainties. Such forward-looking statements are based on
the respective managements' beliefs and assumptions regarding information
currently available, and are made pursuant to the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. Each company's actual
results could differ materially from those expressed in the forward-looking
statements. Factors that could cause results to vary include, among others,
those identified in the respective companies' filings with the Securities and
Exchange Commission. Neither company has any obligation to publicly update or
revise any of the forward-looking statements that may be in this news release.
- MORE -
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PAGE 3 - BEST BUY & MICROSOFT FORM ALLIANCE- 12/16/99
About Best Buy
Best Buy is the nation's largest volume retailer of consumer electronics,
computers, entertainment software and appliances. The company operates 354
stores in 37 states and retails CDs, DVD movies and Best Buy Gift Cards online
at www.BestBuy.com.
About Microsoft
Founded in 1975, Microsoft is the worldwide leader in software for personal and
business computing. The company offers a wide range of products and services
designed to empower people through great software any time, any place and on any
device.
NOTE: Microsoft, MSN, Hotmail and Web TV Network are either registered
trademarks or trademarks of Microsoft Corp. in the United States and/or other
countries. Expedia and Expedia.com are either registered trademarks or
trademarks of Expedia Inc. in the U.S. and/or other countries. Other product and
company names herein may be trademarks of their respective owners.
NOTE TO EDITORS: If you are interested in viewing additional information on Best
Buy, please visit the Best Buy website at http://www.bestbuy.com. If you are
interested in viewing additional information on Microsoft, please visit the
Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft's
corporate information pages.
CONTACT: Colleen Lacter of Waggener Edstrom, 503-443-7000, or
[email protected], for Microsoft Corp.; or Laurie Bauer, 612-947-2450, or
[email protected], or Susan Hoff, 888-661-3787, both of Best Buy Co.,
Inc.
