GameStop and Electronics Boutique Merge
by Alec Matias, Apr 18, 2005 5:59am PDTThe nation's two largest videogame retailers announced today that their companies have reached an agreement to merge. GameStop is taking the primary position, merging EB into their corporation and the new company will remain named GameStop Corp.
Under the terms of the agreement, Electronics Boutique Holdings Corp. (Electronics Boutique) shareholders will receive $38.15 in cash, plus the equivalent of 0.78795 shares of GameStop Corp. (GameStop) Class A common stock for each share of Electronics Boutique. Based on the closing price of GameStop's Class A common stock of $21.61 on Friday, April 15, 2005, the stock component of the per share merger consideration is $17.03. The total merger consideration per share of $55.18 represents a 34.2% premium to the closing price of Electronics Boutique's stock as of Friday, April 15, 2005. The total transaction value is approximately $1.44 billion with consideration consisting of approximately 70% cash and 30% common stock. GameStop intends to fund the cash portion of the transaction through the issuance of $950 million in senior bonds and excess cash.Comments by both CEOs reveal that the motivation behind the merger was to compete on a global scale, something both felt couldn't be done alone. However, I bet money was a big factor, too. Oh, and in other buyout news, Adobe bought Macromedia.
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Comments
Seeing as how right now they don't have any locations up here. Possibly that's what is meant by "competing globally", if only in regards to the Canadian market.
Wonder how the rest of the world is? Do EB and/or Gamestop have other international locations?
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They both will get owned in 5 yrs anyway.
Futile attempt to keep thier heads above the water.
I love the idea of a corner store being able to sell video games. Its very convienant and I like the idea of actually getting to recognize/talk to someone who works at a local place. However, with either of these stores they are never very price competative. So as a result I end up buying a lot of stuff at Frys/Best Buys/etc who have massive purchasing power and so can get deals to sell stuff cheaper. Maybe with these two guys together they can get the purchase power to make those same cheap deals - which means I can drive 5 minutes from my house, talk to someone I kinda know, and buy it there - instead of a 20 minute drive to BBuy.
For the folks moaning about "What if there is an EB and a Gamestop in the same area!!?!". Closing one of those is exactly the sort of efficiency that will help them.
For the folks saying "Less competition will drive up prices!!!" - wtf? Are you saying there is some sort of killer deal on games at EB/Gamestop that is going to go away? Cause I aint seeing it.
For the retards distrusting any sort of corporate movement or change of any sort as being "TEH EVIL!!1!" You realize, that alls you have to do is NOT BUY THINGS FROM THEM if you really hate them that much.
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I thought "competing on a global scale" meant "competing to find a cure to cancer and Super AIDS" and not "completing to make money." Thanks for the clarification.
I hate people looking to make money. By the way, since the comment volume has increased, you can probably jam another tower ad on the right.
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I normally don't repost my own jokes, but it made me snicker to myself. >:(
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It's probably one of the things I miss most :(
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both are overpriced though, so its not that big of a deal from MY standpoint, but this is still huge news.
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us == owned
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>:(
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remember that game (game.uk) merged with eb over here and took them over
so are they just one massive company now? game.uk eb and gamestop
answers on a postcard
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