GameStop Acquisition Could Happen In February

Nintendo Switch console

The writing has been on the wall for GameStop for more than six months. Back in June, we learned that the chain was looking into buyout options. That came just a month after CEO Michael Mauler resigned. As financial losses mounted, so did the speculation that the company would soon be under new ownership. However, few details emerged regarding a potential acquisition. A new report indicates that the transition to the next owner is coming sooner than most anticipated.

According to the Wall Street Journal, at least two companies are bidding to take control of GameStop. The report states that the deal could be consummated within a month. That would seem to indicate that the purchase is much closer to happening than we’d previously realized.

The Wall Street Journal named Sycamore Partners and Apollo Global Management as the two interested parties. Neither company would comment on the report.

The two companies bring different business methods to the equation. Sycamore earned nearly $5 billion last year and are known as a titan of consumer and retail investment. They would bring a respectable business model and history of success to GameStop. Additionally, GameStop’s recent transition to carry more comics and collectibles fits well with Sycamore’s brand.

While highly successful in their own right, Apollo aims to pick up companies that have fallen on hard times. GameStop and their massive $850 million debt certainly qualify in that regard. Many companies prefer sure investments, but Apollo likes to take on long shots. They may be the underdog in the bidding war, but that could be a better fit for the floundering company.

Of course, all of this may be moot. Players have abandoned physical copies of games in favor of going digital. Many also hold an unshakeable negative view towards GameStop for their, ahem, unbalanced trade-in deals. Whoever acquires the company will need to make wholesale changes to make the model sustainable in an electronic world.

Which company do you think would be a better fit for GameStop? Do they have a future in the ever-growing digital world? Give us your thoughts in the comment section below. For more gaming news and highlights, be sure to follow DFTG on Facebook and Twitter!

Drew Weissman230 Posts

Drew is a freelance writer for DFTG. He's the former Managing Editor of Haogamers and has been published in the Chicago Tribune and The Paragon Journal. He also edited the novel Three Brightnesses and Artist Journey: Rachta Lin (2016 and 2017 editions).

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