GameStop is one of the largest retailers of video games and consoles there is. The company had announced in June of last year that it was looking to sell. It was said to be in talks with private equity firms about a potential sale after it received interest of being bought out. Well, now it looks like a deal was not reached because GameStop has announced that it has given up on efforts to sell.
GameStop has had to deal with increased competition from popular online retailers like Amazon. And also physical game sales have gone down across the board but GameStop hedged that by branching out into selling used video games and consoles aside from other digital products. It hasn’t had an easy time.
The company has now given up on efforts to sell itself after it failed to get a potential deal on terms which would be favorable. Investors didn’t like the news and its shares went down 21 percent this morning at the time of this writing.
GameStop held discussions with other firms but did not get financing on terms which would have been commercially acceptable to potential buyers. It was never claimed that there was a done deal. The company cautioned in its initial announcement that there was no assurance of an agreement being reached. So there will be no sale now at any rate.