Gamestop/EBGames Talking Buyouts With Firms

Gamestop/EBGames Talking Buyouts With Firms

Gamestop appears to be holding talks with private equity firms regarding a potential buyout of their business. Assumably, this would include both Gamestop and EBGames retailers.

The retailer saw 150 store closures in 2017, and their stock has gone down more than 32 percent in recent years. With that said, Gamestop shares did see an increase of 13% this past Monday, which points to a buyout plausibility as investors prepare to cash out their investments. Gamestop has hired a financial advisor recently, with sources stating that this move was done to negotiate buyout options. At this time, there is no evidence on who would be negotiating with the company to purchase them, nor are there plans to suggest that the company would stay in business after the buyout is completed.

Digital retailers have become very popular in recent years, especially with Amazon’s discounts on games and the growing popularity of digital markets. Depressing as it is, Gamestop is slowly becoming more and more irrelevant, as players opt-in to purchase their titles from the official Xbox and Playstation online stores, and through Steam on PC. Purchasing physical PC games are almost a thing of the past, with digital options available almost exclusively throughout Canada and the United States.

Gamestop retailers are spread throughout the United States, while EBGames has stores across Canada and Austrailia.

Source: Reuters