GameStop Reportedly Seeking Buyout Options, Multiple Sources Confirm
GameStop as we know it may be changing in the near future, with reports coming in suggesting that the retail store chain is reaching out to firms to discuss potential buyout options. According to Reuters, the sources that reported the news are aware of talks between GameStop and multiple private equity firms, such as Sycamore Partners, which has shown interest in purchasing the retail chain.
With the news coming out that GameStop is seeking to go private, the company’s stock interests spiked by more than 10% by 3pm today, right around the time Reuters released its report revealing that the company is seeking buyouts. The stock increase can be seen in the image below, which was posted by Business Insider:
This isn’t the first time that we’ve seen GameStop attempt to change things up in order to keep up with the times. Late last year it was announced that over 200 stores were to make the switch to having 50% collectibles for inventory. Even more recently, GameStop CEO Michael Mauler stepped down from his position after only having been in it for three months, though he reportedly did so for “personal reasons”.
Despite GameStop’s attempts at slowing its fall, according to Reuters “the retailer’s stock has slid more than 32 percent over the last 12 months, bringing its market capitalization to $1.42 billion, down from about $9.4 billion in 2007.” At this point something has to change, else the retail store chain will go the way of Blockbuster and cease to exist. While many may hope to see such a thing happen to the company for various reasons, nobody wants to see hard working employees lose their jobs. Here’s hoping that GameStop taking a buyout will help prevent that from happening.
So, thoughts on the latest news on GameStop? Do you still shop at its stores, or online? Let us know in the comments section below, and as always, stay tuned to Don’t Feed the Gamers for all the latest gaming and entertainment news! Don’t forget to follow DFTG on Twitter for our 24/7 news feed!
Ryan "Cinna" Carrier1058 Posts
When he isn't reading and writing, Ryan ponders the mysterious, undocumented relationship between Chocobos and Moogles. He's also the DFTG cinnamon bun.