GameStop Exploring a Buyout

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GameStop Corp. confirmed it is in “exploratory discussions” with third parties regarding a potential acquisition but said there are “no assurances” that any deal will result from the discussions.

The statement came after Reuters reported that GameStop was in discussions with private equity firms about a potential acquisition. Sycamore Partners was one of the firms that expressed an interest in the company.

GameStop’s first quarter sales were down 5.5% to $1.93 billion, with consolidated same-store sales dropping 5.3% (a 2.6% decrease in the U.S. and 11.6% internationally). Digital sales decreased 2.5% to $43 million.

In May, GameStop announced that CEO Michael Mauler had resigned for personal reasons, with co-founder and executive director Daniel DeMatteo stepping in as interim CEO. In 2017, GameStop closed 150 stores, representing 2% to 3% of its global store footprint.

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