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GameStop Eyed for Private Takeover?

Posted March 17, 2010 by James Brightman

Although this is strictly in the rumor category for now, it's certainly interesting to think about. The world's leading video game retailer could be acquired by a private equity firm, according to a report on TheStreet.com [thanks Joystiq]. GameStop is currently valued at about $3.27 billion, but an unnamed private equity firm is apparently considering offering the company a buyout for $4.94 billion, which would represent a 33% premium. 

Sterne Agee analyst Arvind Bhatia believes a private takeover of GameStop would make sense. "The company generates strong free cash flow and is not getting respect as a public company," he said. 

GameStop's fourth-quarter earnings report is due out on March 18. The company's stock has been climbing on the buyout rumor and is up 45 cents to $19.86 as of this writing. 

James Brightman has been covering the games industry since 2003 and has been an avid gamer ever since the days of Atari and Intellivision. He was previously the EIC of GameDaily Biz.

24 Comments

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May 5, 2010

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May 9, 2010

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May 13, 2010

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May 23, 2010

This is not saying that Gamestop is doing poorly, on the contrary, they are still doing amazingly well in the face of one of the biggest economic crisises since the great depression.
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May 24, 2010

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May 25, 2010

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May 30, 2010

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fairytales
June 29, 2010

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jim133
July 13, 2010

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July 15, 2010

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