INSUBCONTINENT EXCLUSIVE:
Struggling retail chain GameStop is discussing a potential buyout with private equity firms, according to Reuters
The report says that one of the private equity firms is Sycamore Partners and that GameStop has hired a financial advisor to help with the
talks, though there no guarantee that a deal will come to fruition.
Founded in 1984 and once a mainstay for gamers, GameStop has struggled
to cope with competition from online retailers like Amazon and digital distribution platforms including Steam, even after several attempts
to diversify its business model
For example, last fall GameStop announced a used game subscription service, but that was shelved, reportedly because of issues with the
chain point-of-sale system
Despite other efforts, including selling secondhand games and devices and the acquisition of novelty maker ThinkGeek in 2015, the company
stock has fallen steadily since November 2013, when it hit $56.53 a share, to $13.96 now.
Reuter report comes about a month after investor
Tiger Management sent a letter to GameStop, asking it to launch a strategic review of its business model
Around that time, CEO Michael Mauler also resigned after only three months in the position, citing personal reasons
Microsoft Xbox executive Shane Kim began serving as interim CEO at the beginning of June.
Sycamore Partners said it has no
comment.TechCrunch has also contacted GameStop.
