8-K

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): August 13, 2001

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)	(I.R.S. Employer Identification No.)
7075 Flying Cloud Drive Eden Prairie, Minnesota	55344
(Address of Principal Executive Offices)	(Zip Code)
Registrant’s telephone number, including area code: (952) 947-2000

ITEM 5.  OTHER EVENTS.

             On August 14, 2001, Best Buy Co., Inc. (“Best Buy”), a Minnesota corporation, announced that it entered into a Support Agreement (the “Support Agreement”), dated August 13, 2001, by and among Best Buy, 3058795 Nova Scotia Limited, a Nova Scotia, Canada corporation and a wholly-owned subsidiary of Best Buy (whose name has been changed to Future Shop Acquisition Inc.) (the “Purchaser”), and Future Shop Ltd., a British Columbia, Canada corporation (the “Company”).  Pursuant to the Support Agreement, the Purchaser will commence a cash takeover bid to acquire all of the issued and outstanding shares of common stock of the Company (the “Company Common Stock”) at a price of CDN$17.00 per share (the “Offer”).

             On August 23, 2001, Best Buy commenced the Offer and mailed to the shareholders of the Company a Takeover Bid Circular.  The Offer expires on October 4, 2001 (the “Expiry Time”).

             Closing of the Offer is subject to the satisfaction of certain closing conditions, including there being validly tendered at least 66 2/3% of the Company’s Common Stock and approval of the Canadian government under the Competition Act (Canada) and the Investment Canada Act.  Shareholders holding approximately 68.6% of the outstanding Company Common Stock have agreed to tender their shares in accordance with a Lock-Up Agreement.

             Following completion of the Offer, there will be an amalgamation, a plan or arrangement or other transaction to acquire all shares of the Company Common Stock not purchased in connection with the Offer (the “Subsequent Acquisition”).  In the Subsequent Acquisition, all shares of the Company Common Stock not tendered to the Purchaser in the Offer will be converted into the right to receive the cash amount payable in the Offer, without interest.  In the event that the Offer has been accepted by holders of less than 90% of the shares (excluding shares held by Best Buy, the Purchaser and their respective affiliates), the Purchaser will cause a special meeting of the shareholders of the Company to be called to consider the Subsequent Acquisition.

             The Company will pay Best Buy a fee of CDN $24.0 million if the Offer is terminated or unsuccessful under certain conditions described in the Support Agreement.  These conditions include, in summary form, but are not limited to: (1) the Board of Directors of the Company withdrawing, modifying or changing its approval or recommendation of the Offer in a manner adverse to Best Buy; (2) the Board of Directors of the Company recommending to its shareholders a third party’s business combination proposal; or (3) the Company failing to reaffirm its recommendation of the Support Agreement within ten (10) days of Best Buy’s request to the Company’s Board of Directors to do so following a public announcement of a third party’s acquisition proposal for the Company and thereafter entering into an acquisition agreement with the third party.

             This description constitutes only a summary of the Support Agreement and the transactions contemplated thereby.  The Takeover Bid Circular provides more complete information about the Offer and instructions on tendering shares of the Company Common Stock.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

c)          Exhibits

             The following are filed as Exhibits to this Report:

Exhibit No.	Description of Exhibit
99.1	Press Release issued by the Registrant on August 14, 2001.  Any Internet addresses provided in this release are for information purposes only and are not intended to be hyperlinks.  Accordingly, no information in any of these Internet addresses is included herein.
99.2	Press Release issued by the Registrant on August 23, 2001.  Any Internet addresses provided in this release are for information purposes only and are not intended to be hyperlinks.  Accordingly, no information in any of these Internet addresses is included herein.

SIGNATURES

             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, thereunto duly authorized.

Best Buy Co., Inc.
(Registrant)
By:	/s/ Marc I. Gordon
	Name:	Marc I. Gordon
	Title:	Vice President – Controller

Date: August 24, 2001

BEST BUY CO., INC.

EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K

Exhibit No.	Description of Exhibit
99.1	Press Release issued by the Registrant on August 14, 2001.
99.2	Press Release issued by the Registrant on August 23, 2001.

EX-99.1

EXHIBIT 99.1

For Immediate Release

Best Buy To Acquire Future Shop for $580 Million CDN, or
Approximately $377 Million U.S.

Transaction Accelerates Best Buy’s International Expansion; Company Anticipates Meeting
or Exceeding Analysts’ Earnings Expectations

VANCOUVER, B.C., Aug. 14, 2001 – Best Buy Co., Inc. (NYSE: BBY), the largest U.S. retailer of technology and entertainment products, has agreed to acquire Future Shop (TSE: FSS), the largest Canadian retailer of consumer electronics, for $580 million (CDN) or approximately $377 million (U.S.).

"This acquisition accelerates by several years our goal of becoming North America's premier retailer and eventually the leading global retailer of technology and entertainment products and services," said Best Buy Founder, Chairman & CEO Richard M. Schulze. "Future Shop currently operates 88 stores throughout Canada and is the nation's number one retailer of consumer electronics. We plan to grow Future Shop's revenues, store count and employee base."

Best Buy has agreed to tender an offer of cash for Future Shop stock in the amount of Canadian $17.00 per share or approximately U.S. $11.05 per share. The Company expects the acquisition to be accretive to earnings in the current fiscal year, adding 1-2 cents per share.

"Given this transaction and the strength of our underlying businesses, we continue to anticipate that we will meet or exceed analysts' expectations for our second quarter and fiscal year earnings," Schulze said.

Hassan Khosrowshahi, chairman and CEO of Future Shop, said, "Best Buy's financial strength, reputation and retailing expertise is a winning combination for our employees, shareholders and customers. Shareholders receive an attractive price, customers will continue to see the newest technology, and our employees will benefit from Future Shop's continued growth as part of a global company. Our board of directors unanimously supports this transaction."

Burnaby, B.C.-based Future Shop will operate as a separate Canadian subsidiary of Best Buy Co., Inc. The transaction is scheduled to close late September 2001, subject to regulatory approvals. Upon the close, Khosrowshahi - who founded Future Shop in 1982 — plans to relinquish his role as chairman and CEO. Kevin Layden, President and COO of Future Shop, is to continue as president of Future Shop, reporting to Brad Anderson, vice chairman of Best Buy. Layden spent 17 years with Circuit City Stores Inc. before joining Future Shop in 1997. He was promoted to president and COO of Future Shop in 1999.

Thomas Healy, formerly President of Best Buy Canada, becomes President of Best Buy International, reporting to Anderson, responsible for Best Buy's ongoing international expansion efforts. Healy joined Best Buy in 1990, led the Company's successful expansion into the Midwest, East and Southeast, and began work on its Canadian expansion last year.

Best Buy will conduct a conference call for analysts, institutional investors and news media at 10 a.m. EST on August 14. Individuals may access the call via the Internet on the Company's Web site at www.BestBuy.com by clicking on the "About Us" link and then selecting the "Investor Relations" link. The call will be posted on the "Investor's Overview." Following the live event, the call will be posted on the Audio Archive page of Best Buy's Web site and may be accessed at any time.

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 management's beliefs and assumptions regarding information currently available, and are made pursuant to the "safe harbor" provisions of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The 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 expressed in the Company's filings with the Securities and Exchange Commission. The Company has no obligation to publicly update or revise any of the forward-looking statements that may be in this news release.

About Future Shop

Future Shop is Canada's largest, fastest-growing national retailer and e-tailer of consumer electronic products for the digital age, with 88 stores and the nation's premier Internet-based electronics superstore, at Future Shop.ca. Future Shop and its 7,100 associates are committed to providing Canadians with expert service; the latest digital products such as DVD movies and wireless Internet devices; and a wide selection of televisions, computers, music and appliances. Future Shop is listed on the Toronto Stock Exchange under the symbol FSS. For more information about Future Shop, visit the company's Web site at www.Future Shop.ca.

About Best Buy Co., Inc.

Minneapolis-based Best Buy Co., Inc. (NYSE: BBY) is the number one specialty retailer of consumer electronics, personal computers, entertainment software and appliances in the U.S. The Company operates retail stores and commercial web sites under the names: Best Buy (BestBuy.com), Magnolia Hi-Fi (MagnoliaHiFi.com), Media Play (MediaPlay.com), On Cue (OnCue.com), Sam Goody (SamGoody.com), and Suncoast (Suncoast.com). The Company reaches consumers through more than 1,800 retail stores nationwide, in Puerto Rico and in the U.S. Virgin Islands.

Investor Contact:	Media Contacts:
Susan Hoff	Connie Stelter	Lori DeCou
SVP- Public Affairs & IRO	Best Buy Public Relations	Future Shop Communications
(888) 712-4171	(952) 947-2867	(604) 412-1012
susan.hoff@bestbuy.com	connie.stelter@bestbuy.com	ldecou@futureshop.com

EX-99.2

		For Immediate Release
	Contacts: Jennifer Driscoll - Best Buy Co., Inc. 952-947-2350 jennifer.driscoll@bestbuy.com	Lori DeCou - Future Shop 604-412-1012 ldecou@futureshop.ca

Takeover Bid for Future Shop Common Shares Begins

MINNEAPOLIS, Aug. 23, 2001 – Best Buy Co., Inc. (NYSE: BBY) today announced it has commenced the cash takeover bid for all shares of common stock of Burnaby, BC-based Future Shop Ltd. (TSE: FSS) at a price per share of $17.00. This offer is made pursuant to the Support Agreement between the Company and Future Shop announced on Aug. 14, 2001. The takeover bid expires at 5:00 p.m., Vancouver time, on October 4, 2001, unless it is extended by the Company in accordance with the terms of the takeover bid.

Future Shop shareholders were sent the takeover bid circular, the directors’ circular and certain related documents today. These documents will be available at the Canadian Securities Administrator’s Web site at www.sedar.com, and may be obtained from the Dealer Manager or the Information Agent for the takeover bid, as set forth in the documents.

Future Shop is a Canadian retailer and e-tailer of consumer electronic products for the digital age, with 89 stores and the nation’s premier Internet-based electronics superstore, at Future Shop.ca. Future Shop and its 7,100 associates are committed to providing Canadians with expert service; the latest digital products such as DVD movies and wireless Internet devices; and a wide selection of televisions, computers, music and appliances. Future Shop is listed on the Toronto Stock Exchange under the symbol FSS. For more information about Future Shop, visit the company’s Web site at www.Future Shop.ca.

This press release is neither an offer to purchase nor a solicitation of an offer to sell shares of Future Shop. Future Shop’s shareholders are advised to read the takeover bid circular and the directors’ circular regarding the takeover bid referred to in this news release. The takeover bid circular (including an offer to purchase and related documents) and the directors’ circular contain important information, including the terms and conditions of the takeover bid, which should be read carefully before any decision is made with respect to the takeover bid.  The takeover bid is subject to certain conditions described in the takeover bid circular, such as receipt of requisite regulatory clearances and there being tendered at lease 66 2/3% of Future Shop’s outstanding shares on a fully diluted basis.

Statements made in this new release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties.  Such forward-looking statements are based on management’s beliefs and assumptions regarding information currently available, and are made pursuant to the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended.  The 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 expressed in the Company’s filings with the U.S. Securities and Exchange Commission.  The Company has no obligation to publicly update or revise any of the forward-looking statements that may be in this news release.

About Best Buy Co., Inc.

Minneapolis-based Best Buy Co., Inc. (NYSE: BBY) is the number one specialty retailer of consumer electronics, personal computers, entertainment software and appliances in the U.S. The Company operates retail stores and commercial web sites under the names: Best Buy (BestBuy.com), Magnolia Hi-Fi (MagnoliaHiFi.com), Media Play (MediaPlay.com), On Cue (OnCue.com), Sam Goody (SamGoody.com), and Suncoast (Suncoast.com). The Company reaches consumers through more than 1,800 retail stores nationwide, in Puerto Rico and in the U.S. Virgin Islands.

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