Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, April 12, 2019

Article Excerpt

GAMESTOP CORP., $9.32, symbol GME on New York, is a specialty retailer that sells new and used video games and video game consoles through its 5,800 GameStop, EB Games, and Micromania brick-and-mortar stores in 14 countries. As well, it sells games online through www.Gamestop.com. In March 2019, activist investors Hestia Capital Partners and Permit Capital Enterprise, who together own 1.3% of GameStop stock, sought changes from the video game retailer, including the appointment of four of their own directors to GameStop’s board. The activists are also demanding that the company take other steps to improve its performance after GameStop’s attempt to sell itself earlier this year failed. The search for a buyer was part of the company’s strategic review. As a result of its assessment, GameStop reached a deal in November to sell its Spring Mobile business to Prime Communications LP. That sale of nearly 1,300 wireless phone outlets closed in January 2019, earning the company about $735 million in cash. As the result…

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