There’s been a lot of concern on the GameStop front lately, as a report back in June suggested that the game retail chain was looking for buyout offers after continuous years of financial losses. But now, it appears that someone may be stepping up to complete it.
A new report from GameSpot suggests that at least two companies have shown interest in the brand and are currently bidding for ownership rights. There’s also a possibility that a purchase, and change in said ownership, could take place as soon as mid-February, according to a source that’s seemingly close to the deal.
The initial report first came up over at the Wall Street Journal, and the private equity companies involved with bidding are Apollo Global Management and Sycamore Partners. However, the source didn’t indicate which one might be closer to making the purchase, as bidding is still ongoing.
GameStop had no comment on the matter, nor did the two firms that are reportedly interested in the purchase. So it’s a matter of if, and not necessarily when, at this point.
According to GameSpot, Sycamore seems like an ideal partner in the deal, since it recently raised $4.75 billion in capital over the past year, and works in the consumer and retail investment department. It seems like an ideal fit.
That said, Apollo also has experience in investments, particularly in companies that have “fallen out of favor,” as the author puts it.
Previously, the company’s co-president and lead partner, Scott Kleinman, had noted that it was on the lookout for opportunities that “others are unable or willing to figure out.”
Considering that GameStop has been losing money for some time, not to mention the passing of its CEO Paul Raines back in March 2018 (only for his replacement, Michael Mauler, to depart the position three months later), it’s certainly seen better days. But perhaps a new partnership could help bring it roaring back, and possibly with a new focus that will keep gamers interested, rather than going to other retailers or purchasing games directly via digital storefronts.0comments
We’ll let you know as soon as a buyout is confirmed.
What do you think about companies possibly buying out GameStop? Did you have a different partner in mind? Let me know on Twitter at @TheDCD!