Geek gaming mecca GameStop may finally be sold off to another company. Rumors have been swirling since an announcement last summer. The struggling video game and geek culture chain has been looking for salvation for quite some time.
The Wall Street Journal is reporting there are at least two companies vying for the stagnated retailer. Private equity firms Sycamore Partners and Apollo Global Management are both in talks. If the rumors are true, the deal could become public by the middle of February.
All parties involved refused to comment on the current situation. Both firms specialize in retail investment and floundering companies. The writing seems to be on the wall with GameStop selling its mobile arm for $700 million in the 4th quarter of 2018.
GameStop woes have been well publicized over the last few years. The retailer closed 150 stores (of 7,500) back in 2017. The company’s stock took a hit when initial buyout talks with equity firms fizzled out. The troubles keep mounting for this once vulnerable brand.
Unfortunately, GameStop has seen its relevance decline sharply as of late. Digital downloads and retailers like Amazon, Target, and Walmart have become increasingly viable options for gamers. Gamestop Corp. acquired Geeknet (parent company to ThinkGeek and ThinkGeek Solutions), back in 2015, but the deal didn’t seem to make a difference.
The video game landscape is changing. How gamers buy and play their games is vastly different than even a decade ago. The used game market is stagnating and physical retail outlets are becoming obsolete.
A buyout could be in company’s best interest. Only time will tell if GameStop can be saved or go out like so many iconic retailers before it. The real question that should be asked, if the retailer does disappear, will anyone really notice?