GameStop Completes Sale of Spring Mobile Division
17 January 2019 - 8:05AM
GameStop Corp. (NYSE: GME) today announced that it
has completed the previously disclosed sale of its Spring Mobile
business to Prime Communications, L.P. for $700 million, excluding
transaction fees and customary working capital and indebtedness
adjustments. Spring Mobile owns and operates 1,284 AT&T
wireless stores.
The Company, its board of directors, together
with outside financial advisors, continues to conduct an on-going
comprehensive review of a full range of strategic and financial
alternatives to enhance shareholder value. Use of proceeds from the
sale will be determined in conjunction with the completion of that
review and may be used to reduce the company’s outstanding debt,
fund share repurchases, reinvest in core video game and
collectibles businesses to drive growth, or some combination of
these options.
Dan DeMatteo, executive chairman of GameStop’s
board of directors, said, “We are pleased to successfully complete
this transaction and begin 2019 with an increased focus on the
video game industry and the rapidly-growing collectibles space.
These are areas where we are well positioned to leverage the
GameStop brand and capitalize on our competitive position,”
The Company also announced that it anticipates
reporting holiday 2018 sales results before the market opens on
Friday, January 18, 2019.
About GameStopGameStop Corp., a Fortune 500
company headquartered in Grapevine, Texas, is a global,
multichannel video game and consumer electronics retailer. GameStop
operates over 5,800 stores across 14 countries. The company's
consumer product network also includes www.gamestop.com; Game
Informer® magazine, the world's leading print and digital video
game publication; and ThinkGeek, www.thinkgeek.com, the premier
retailer for the global geek community featuring exclusive and
unique video game and pop culture products, and Simply Mac, which
sells the full line of Apple products, including laptops, tablets,
and smartphones and offers Apple certified warranty and repair
services.
General information about GameStop Corp. can be
obtained at the company’s corporate website. Follow @GameStop and
@GameStopCorp on Twitter and find GameStop on Facebook
at www.facebook.com/GameStop.
Safe HarborThis press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are based
upon management’s current beliefs, views, estimates and
expectations, including as to the Company’s industry, business
strategy, goals and expectations concerning its market position,
future operations, margins, profitability, capital expenditures,
liquidity and capital resources and other financial and operating
information. Such statements include without limitation those about
the Company’s outlook for fiscal 2018, future financial and
operating results, projections, expectations and other statements
that are not historical facts. All statements regarding the board’s
review of operating, strategic, financial and structural
alternatives and expected costs and benefits, including whether
operating, strategic, financial and structural alternatives could
unlock value, are forward-looking statements. Forward-looking
statements are subject to significant risks and uncertainties and
actual developments, business decisions and results may differ
materially from those reflected or described in the forward-looking
statements. The following factors, among others, could cause
actual results to differ from those reflected or described in the
forward-looking statements: the uncertain outcome, impact, effects
and results of the board’s review of operating, strategic,
financial and structural alternatives; volatility in capital and
credit markets, including changes that reduce availability, and
increase costs, of capital and credit; our inability to obtain
sufficient quantities of product to meet consumer demand; the
timing of release and consumer demand for new and pre-owned
products; our ability to continue to expand, and successfully open
and operate new stores for our collectibles business; risks
associated with achievement of anticipated financial and operating
results from acquisitions; our ability to sustain and grow our
console digital video game sales; the impact of goodwill and
intangible asset impairments; cost reduction initiatives, including
store closing costs; risks related to changes in, and our continued
retention of, executive officers and other key personnel; changes
in consumer preferences and economic conditions; increased
operating costs, including wages; cyber security events and related
costs; risks associated with international operations; increased
competition and changing technology in the video game industry;
changes in domestic or foreign laws and regulations that reduce
consumer demand for, or increase prices of, our products or
otherwise adversely affect our business; our effective tax rate and
the factors affecting our effective tax rate, including changes in
international, federal or state tax, trade and other laws and
regulations; the costs and outcomes of legal proceedings and tax
audits; and unexpected changes in the assumptions underlying our
outlook for fiscal 2018. Additional factors that could cause our
results to differ materially from those reflected or described in
the forward-looking statements can be found in GameStop's Annual
Report on Form 10-K for the fiscal year ended February 3, 2018
filed with the SEC and available at the SEC's Internet site at
http://www.sec.gov or http://investor.GameStop.com. Forward-looking
statements contained in this press release speak only as of the
date of this release. The Company undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as may
be required by any applicable securities laws.
ContactGameStop Corp. Investor Relations(817)
424-2001investorrelations@gamestop.com
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