Thu, Mar 18, 2010 | 17:10 GMT
Rumor: Private equity group looking to buy GameStop
Rumor has it that a private equity group is looking to purchase US retail giant, GameStop.
According to The Street, a trade blog, GameStop is currently worth roughly around $3.27 billion, and the private equity firm is considering an offer of $4.94 billion to nab it.
Whether true or not, the rumor has sparked an uptake in stock prices for the retailer by around six percent to $19.86 per share in just five days.
“The company generates strong free cash flow and is not getting respect as a public company,” Sterne, Agee & Leech analyst Arvind Bhatia told The Street.
If purchased, the GameStop would become a privately traded company instead of a publicly traded one.
When asked for comment by Joystiq, a GameStop rep told the site that it does not “comment on speculation or rumors”.
More through the links.
1 comment
#1
13years
19/03/10, 5:12 am
I’m surprised MS hasn’t done more to shut out a company like GameStop. Gamestop selling used games only hurts MS bottom line.