GameStop (GME) is considering a secondary stock offering to fund future growth

Though not mentioned on the Q4 2020 earnings conference call, GameStop is reportedly selling further shares to fund ongoing company transformation.

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When GameStop’s (GME) Q4 2020 earnings call ended, many listeners found themselves confused that the stock went entirely unaddressed during the short, questionless, and abruptly-ending call. Well, it turns out that GameStop did address stock eventually, kind of… Just not on the call. Reportedly, GameStop will be selling additional equity shares in order to capitalize on the growth of its recent stock volatility and fund ongoing company growth and transformation.

Word of GameStop’s selling of additional shares to the market come out of its Q4 2020 earnings report. It was in this report that GameStop made mention that it was considering further sale of equity shares.

“Since January 2021, we have been evaluating whether to increase the size of the ATM (at-the-market) Program and whether to potentially sell shares of our Class A Common Stock under the increased ATM Program during the course of fiscal 2021, primarily to fund the acceleration of our future transformation initiatives and general working capital needs,” GameStop wrote in its filing.

GameStop's stock value has the company considering whether to add more to the market to fund plans for its ongoing transformation and future business ventures.
GameStop's stock value has the company considering whether to add more to the market to fund plans for its ongoing transformation and future business ventures.

It’s interesting that this tidbit went entirely unnoted by CEO George Sherman during the GameStop Q4 2020 conference call. While the call did contain some conversation about highlights of the earnings report, such as GameStop’s increased e-commerce sales, as well as forward-facing commentary, such as the company’s intention to put expand into PC gaming, monitors, and gaming TVs, the call did nothing to address GameStop’s recent volatile stock situation. The call ended entirely without mention of the GameStop stock situation. Perhaps more disappointing was that the GameStop call went without a Q&A session, not allowing participants to bring it up.

Nonetheless, GameStop seems to recognize the important position its stock value places it in. The intended purpose of further stock entering the market at its current boosted price is so GameStop can further fund its 2021 efforts of company transition and transformation, of which the aforementioned stretch into PC gaming and TVs likely plays a part. It will remain to be seen if GameStop (GME) goes through with the effort, so stay tuned as we continue to follow for further news and updates.

News Editor

TJ Denzer is a player with a passion for games that has dominated a lifetime. When he's not handing out beatdowns in the latest fighting games, exploring video game history, or playing through RPGs with his partner, he's searching for new food and drinks in the constant pursuit of good times with good people inside and outside the South Texas area. You can also find him on Twitter @JohnnyChugs.

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