GameStop, one of the largest retailers of video games and consoles, had announced in June last year that it was looking to sell itself. It was said to be in talks with private equity firms about a potential sale after it received interest of being bought out. It appears that a deal was not reached because GameStop has now announced that it has given up on efforts to secure a sale.
GameStop has also had to put up with increased competition from popular online retailers like Amazon. It also doesn’t help that physical game sales have declined across the board but GameStop hedged that by branching out into selling used video games and consoles aside from other digital products.
The company said today that it has given up on efforts to sell itself after it failed to get a potential deal on terms which would be favorable. Investors didn’t take the news lightly and its shares were down 21 percent in early trading this morning.
GameStop mentions that it also held discussions with other firms but did not get financing on terms which would have been commercially acceptable to a potential buyer. It was never claimed that a deal was done as GameStop had also cautioned in its initial announcement that there was no assurance of an agreement being reached.