GameStop Could be Purchased by Another Company as Early as February
GameStop is reportedly drawing interest from two different companies with a projected sale being announced by next month.
There’s no denying that retail chain GameStop has struggled to find its footing in recent years. With the rise in digital sales over physical and profit margins that rely too heavily on used game sales, the company has slowly started to report even more losses. Despite this dismal outlook for GameStop, however, it seems like the business is now on the verge of being purchased by a new company.
As first reported by The Wall Street Journal, two companies are currently bidding to purchase GameStop with a potential deal being announced to the public at some point next month. According to sources within WSJ, the two companies looking to buy the retailer are that of Sycamore Partners and Apollo Global Management. Both of these companies and GameStop itself declined to comment on this potential sale when questioned.
As pointed out by GameSpot, Apollo Global has a track record of looking to make purchases of companies that have recently struggled to hit financial goals. Where some companies may look to pass on purchasing GameStop due to its recent struggles, Apollo believes it could be the one to turn around the chain. Sycamore Partners, on the other hand, has a history of working with retailers, so this marriage would make sense for this reason alone.
It remains to be seen if GameStop will be picked up with either Apollo or Sycamore and it’ll take even longer to see if a potential sale helps turn things around for the outlet. We’ll keep you posted more on this story as it potentially develops in the coming weeks.