News.blog: Carphone gets $2.1bn US investment

Best Buy, the largest consumer electronics retailer in the US, is getting into the European mobile phone market by taking a stake in retailer Carphone Warehouse.

Best Buy, which operates 900 stores across the US, will pay $2.1bn (£1bn) for half interest in Carphone Warehouse, the largest mobile phone retailer in Europe.

Carphone Warehouse's 2,400 US and European stores will be included in the new joint venture. Also included in the deal are Carphone Warehouse's Web, insurance and airtime reselling businesses. But the company will retain full ownership of its traditional landline phone business in the UK and France.

The companies have already worked together on developing Best Buy Mobile, a joint venture launched in 2006 with retail stores focused on selling mobile phones. Best Buy Mobile now has 200 mobile outlets, mostly in existing Best Buy stores.

Best Buy and Carphone Warehouse have also collaborated on bringing the Geek Squad, a 24-hour computer support team, to Europe.