GameStop Corp. (NYSE:GME) stock is on the move today with news of a possible buyout.
Recent reports claim that GameStop Corp. has been in talk with several private equity firms about a potential deal to take it private. Among these firms is Sycamore Partners, which reportedly has an interest in the video game retailer.
Neither GameStop Corp. or Sycamore aren’t commenting on the reports. However, we do know that the company has been facing pressure from investors to make changes to its business. It’s possible a buyout could be what it needs to get back on track after years of decline.
Anonymous sources claim that GME is getting help from financial advisors for its discussions with these private equity firms. The people that are reporting the inside information about GameStop Corp. also say that there is no guarantee a deal will come from any of these talks, reports Reuters.
News that GameStop Corp. may be discussing a possible buyout with private equity firms sent its stock on a wild ride Monday. Due to this, trading of the stock was suspended for a short period of time.
All of this news about a possible buyout of GameStop Corp. has sent the company stock up over the last couple of days. The stock’s closing price on Monday was $15.21. This is up roughly 9% from its closing price on Friday. The stock is also up another 2% as of noon Tuesday, but is still down 16% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.