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Thinkpad GameStop Corp. said Monday it was buying rival video game retailer Electronics Boutique in a deal that creates the nation's largest video game retail chain.If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free.
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Laptop Computers April 18, 2005 (AXcess News) Los Angeles - GameStop Corp. (NYSE: GME) said Monday it was buying rival video game retailer Electronics Boutique (Nasdaq: ELBO) in a deal that creates the nation's largest video game retail chain.
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Laptop Computer The combined video game retail stores would have 3,200 stores nationwide and 600 internationally with combined sales exceeding $4 billion annually.
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Desktop Computer Shares of Electronics Boutique had climbed over 36 percent to $56.24, up $15.12, by 10:29AM ET Monday. GameStop shares were up almost 15 percent, or $3.19, last trade $24.80.
Notebooks GameStop is buying Electronics Boutique for $1.44 billion in cash and stock.
Lenovo The combined video game retailers would give the company about 25 percent of the national video game market, analysts said.
Hard Drive GameStop said that 47 percent of Electronics Boutique shareholders had already pledged their support for the deal.
Travelstar Electronics Boutique shareholders would receive $38.15 in cash and the equivalent of 0.78795 shares of GameStop Class A common stock for each Electronics Boutique share, the companies said.
Gateway That's a premium of over 34 percent from Friday's closing price.
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