GameStop, a major retailer of video games and electronics, has confirmed that it’s looking to sell itself. The confirmation comes following a report which revealed that the retailer is in talks with private equity firms about a potential transaction after it received buyout interest. Reuters reported that the company has even hired a financial adviser to assist in these discussions. The company later confirmed the talks itself.
GameStop has sent out a press release confirming that it’s in “exploratory discussions” with third parties concerning a potential transaction but it does caution that there’s no assurance that any agreement will be reached in these discussions.
Like many physical retailers, GameStop has also had to put up with increased competition from online retailers such as Amazon. Physical game sales have declined across the board but GameStop has been able to bear the brunt as it branched out into selling used video games and consoles among other digital products.
So the impression being given by the company at this point in time is that even though it’s talking to third parties for a potential buyout, it hasn’t reached an agreement with any of the parties just yet. “GameStop does not intend to make any additional comments regarding these discussions unless and until it is appropriate to do so,” the company added.