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GameStop drops 22% after deciding to end its process to sell the company


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https://www.cnbc.com/2019/01/29/gamestop-has-decided-to-end-its-process-to-sell-the-company.html

 

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GameStop has ended its efforts to sell the company, the company announced Tuesday. The stock fell at least 22% in premarket trading on the news, shedding nearly $360 million in market value.

 

The board decided to end the process "due to the lack of available financing on terms that would be commercially acceptable to a prospective acquirer," the company said in a press release.

 

Gamestop previously sold its Spring Mobile business in a deal that was completed in January for about $735 million in immediate cash proceeds. The company said while its board is still evaluating the best way to spend the proceeds, it may use them to pay down debt, fund share repurchases and/or reinvest in core businesses including video games and collectibles.

 

GameStop said it is working with an executive search firm to find a permanent CEO.

 

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That business could still be successful if it weren't run by morons.

 

They have a sale right now, two used $14.99 games for $20. Yet most of the games were magically priced at $17.99. When $14.99 was a once a very common price, it was pretty interesting to not be able to find any once the sale kicked in.

 

Great way to not sell your games, GameStop! You keep doing you, boo.

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2 minutes ago, ort said:

You know, I hate Gamestop and you would think I would want them to go away... but the world needs game stores like this. Well, maybe slightly better game stores... but we need something...

Do we? What do they offer that Target / Wal Mart / Best Buy do not? Even if we ignore amazon and other online retail options, what does GameStop bring to the table?

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I have no love for Gamestop, but I'll be kind of sad to see them go under. I was able to get my Xbox One X for $200 because of their appetite for used items. I hardly buy games from them, but I occasionally sell them. I actually think that they have tried hard to find margins where they can find them in an industry where it doesn't matter where you purchase from. Pushing used games, pre-orders, even those stupid magazines. It's easy to see why they're doing poorly, but I personally wouldn't touch the company with a 10 foot pole. There's just no good way to make that model work anymore. They survived longer than dedicated music and video stores, but it seems inevitable that Gamestop will suffer the same fate.

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1 hour ago, TwinIon said:

I have no love for Gamestop, but I'll be kind of sad to see them go under. I was able to get my Xbox One X for $200 because of their appetite for used items. I hardly buy games from them, but I occasionally sell them. I actually think that they have tried hard to find margins where they can find them in an industry where it doesn't matter where you purchase from. Pushing used games, pre-orders, even those stupid magazines. It's easy to see why they're doing poorly, but I personally wouldn't touch the company with a 10 foot pole. There's just no good way to make that model work anymore. They survived longer than dedicated music and video stores, but it seems inevitable that Gamestop will suffer the same fate.

Bloomberg came to the identical conclusion.

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1 minute ago, Kal-El814 said:

Do they, though? 

 

Local game stores have managed to hang in there despite the internet by offering community space, organizing events, etc. Does GameStop actually do anything to compete beyond mere existence? 

I'd say that its (much-maligned) trade-in program and used game sales did have a competitive effect on retailers like Best Buy and Amazon.  However, that's obviously been significantly reduced with the advent of digital distribution.

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3 hours ago, TwinIon said:

I have no love for Gamestop, but I'll be kind of sad to see them go under. I was able to get my Xbox One X for $200 because of their appetite for used items. I hardly buy games from them, but I occasionally sell them. I actually think that they have tried hard to find margins where they can find them in an industry where it doesn't matter where you purchase from. Pushing used games, pre-orders, even those stupid magazines. It's easy to see why they're doing poorly, but I personally wouldn't touch the company with a 10 foot pole. There's just no good way to make that model work anymore. They survived longer than dedicated music and video stores, but it seems inevitable that Gamestop will suffer the same fate.

Thats probably part of the problem. Their used game prices just aren't that great. That's all profit for them which is good for them. But I know I haven't bought a used game from them in many years. Digital sales on the PSN are basically WEEKLY now. Like right now I'm eyeing up Resident Evil 7 on sale for $14.99. Gamestop is $19.99 used, plus I would have to leave the house and go get it.  They are doomed :(

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