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Rumor: Private equity group looking to buy GameStop

News by Stephany Nunneley-Jackson News Editor

Published on March 18, 2010

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".