US-based consumer electronics and wireless services retailer GameStop has scrapped plans to sell the company as part of the review of its strategic and financial alternatives.

On 29 January, the board of directors stopped its efforts to find a potential buyer for the company due to the lack of available financing on terms.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The company’s board with external financial and legal advisers started a review process to enhance shareholder value in June last year.

As part of this process, the board entered talks with third-parties regarding a potential sale of the company.

“These are areas where we are well-positioned to leverage the GameStop brand and capitalise on our competitive position.”

Earlier this month, the retailer completed the sale of its Spring Mobile business to authorised AT&T retailer Prime Communications. The transaction generated approximately $700m in immediate cash proceeds.

According to the company, the amount will be used to reduce its outstanding debt, fund share repurchases, reinvest in core video game and collectibles businesses to increase growth.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Commenting on the transaction, GameStop board of directors executive chairman Dan DeMatteo said: “We are pleased to successfully complete this transaction and begin 2019 with an increased focus on the video game industry and the rapidly growing collectables space.

“These are areas where we are well-positioned to leverage the GameStop brand and capitalise on our competitive position.”

In addition, the company’s board is currently searching for a permanent CEO and is working with an executive search firm for this.