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."