Best Buy agreed to extend the deadline to Feb. 28 for founder Richard Schulze to make a bid for the company.

The company said Friday the extension would allow Schulze to include the consumer electronics retailer's full-year results as part of his due diligence review.

The new deadline will also give Schulze more time to line up partners and financing for a bid. A source told Reuters on Thursday that Schulze didn't have financing lined up in time for a December bid.

Under the extension, Schulze will be able to submit an offer any time during February,, and the company will have 30 days to review and make a decision on the bid.

Following the news, the company's shares fell sharply in trading after the opening bell. (Click here to get the latest quotes for Best Buy.)