Sections

GameStop in buyout talks, reports Reuters

UPDATE: Retailer confirms 'exploratory discussions' are underway

US retail giant GameStop has been subject to buyout interest, reports Reuters.

Shares in the firm spiked up to 11% on the back of the reports.

One of the private investment firms that have expressed interest in the retailer is Sycamore Partners, and GameStop has hired a financial advisor to help with the discussions. However, there is no guarantee that the talks will result in GameStop deciding to sell itself, the report states.

GameStop has had an unusual year, with the sad passing of its CEO and the appointment of another, who then left three months later to be replaced by former Xbox boss Shane Kim.

It also reported a drop in annual income during its fourth quarter (despite improved sales), and other senior management also exited the company - namely COO Tony Bartel and EVP Michael Hogan.

It has since attracted new investment from a major hedge fund. And despite a strong E3, full of big games due over the next 9 months, investors were not satisfied and GameStop's share price fell during the week.

Update: GameStop has confirmed that these conversations are occurring, but declined to comment on specifics. Its statement:

"GameStop Corp. today confirmed it is in exploratory discussions with third parties regarding a potential transaction. There can be no assurance any agreement will result from these discussions. GameStop does not intend to make any additional comments regarding these discussions unless and until it is appropriate to do so."

Related stories

E3 2018 has GameStop “looking forward to an incredible Q4”

Leading retailer shares pre-order reactions to the biggest announcements, and how publishers will benefit from a wider spread of releases

By James Batchelor

Former Xbox boss Shane Kim named interim CEO at GameStop

Q1 financials show predictable drop-off from Switch release but company maintains predictions for a stronger second half of 2018

By Rebekah Valentine

Latest comments (1)

Doug Abramson Programmer (C/C++/Embedded Linux) A month ago
Many of my fellow gamers across all generations agree that GameStop was one of the worst things to ever happen to the retail gaming industry for many reasons, most notably being they give you $4 for a game that you bought new and resell it at $45 right after. Consumers saw through this as well as the con of buying "new" games which were opened and put away behind the counter (only to be scuffed up, as well as taken home by employees to play) and sold as new to the avg. joe. I don't know a single person who will miss this company.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.