GameStop Confirms Private Equity Talks

GameStop, the world’s largest video game retailer, June 19 confirmed it is in preliminary negotiations with unnamed third parties regarding a potential transaction.

The retailer, which has seen rapid changes with the advent of digital gaming, said there was no assurance any agreement would result from these discussions. It has hired a financial advisor.

“GameStop does not intend to make any additional comments regarding these discussions unless and until it is appropriate to do so,” the company said in a statement.

Trading of the retailer’s stock was halted by Nasdaq June 18 due to “volatility.”

The retailer remains enmeshed in corporate turbulence. Profit plummeted 52% on revenue of $1.9 billion in the most-recent fiscal period driven by declines in hardware and software sales. The company remains headed by an interim CEO after previous boss Michael Mauler departed after 90 days on the job for unspecified reasons.

 

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