GameStop Is Currently In Buyout Talks

One of the last major video game retailers is currently in buyout talks with a number of interested parties according to a report on Reuters. It has been reported that the retailer has even hired a financial adviser to provide assistance during these negotiations.

As we have seen with several traditional retailers such as Sears, Toys R Us and Best Buy, GameStop is having difficulty competing with Amazon and new game distribution paths such as digital marketplaces. The brick-and-mortar games retailer has managed to stay afloat so far with used game sales, expanding into other types of merchandise and even by dabbling into publishing their own video game, Song of the Deep.

To put GameStop’s financial woes into perspective – the retailer’s market cap was well over $9 billion USD back in 2007. As of today the company is worth a little over $1.5 billion USD.

One investor group that is reportedly interested in acquiring GameStop is Sycamore Partners. If you have never heard of them before, they manage a number of retailers including The Limited, Staples and Hot Topic.

As always, it is important to note that buyout talks are not a guarantee that a company will in fact be acquired. The board of directors at GameStop would have to agree to sell the company before any further action can take place.

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