GameStop stock was up Friday on news that a buyout of the company may be coming in the near future.
According to these rumors, GameStop (NYSE:GME) may be planning to announce a buyer for the business as early as mid-February. This comes after years of declining revenue and GameStop stock dropping 30% over the last year.
The rumor claims that there are already several private equity firms that are interested in obtaining the company. This includes Sycamore Partners and Apollo Global Management (NYSE:APO). However, it unknown which one, if any, will buy the struggling retailer of new and used video games.
These rumors come from anonymous sources that are reportedly close to the matter. However, both GameStop and Sycamore Partners are fusing to respond to comments about a possible deal, reports CNBC.
This isn’t actually the first time that Sycamore Partners’ name has shown up in connection to GameStop. There were rumors in June 2018 that the private equity firm was considering buying up the video game retailer.
It also doesn’t come as a surprise that GameStop is considering a sale of the company. CEO Dan DeMatteo said as much during its earnings report for the second quarter of 2018.
“As our teams prepare for a busy and exciting holiday period, our board of directors, with the support of our financial and legal advisors, continues to conduct a comprehensive review of strategic and financial alternatives, including, but not limited to, a potential sale of the company.”
GME stock was up 15% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.