GameStop Surges on Report About Potential Private Equity Deal

(Bloomberg) -- GameStop Corp. rose the most in more than three years on a report that the beleaguered video-game retailer has drawn takeover interest from private equity firms.

The chain attracted interest from such firms as Sycamore Partners, Reuters reported on Monday. That sent the shares up as much as 13 percent to $15.78, marking their biggest intraday gain since January 2015.

A takeover would bring a payday to investors after a more than four-year stock slump. The Grapevine, Texas-based company has been struggling to remain relevant in an era when more and more gamers download their software, rather than buying it at a store.

The stock was down 22 percent this year through the end of last week.

GameStop has hired advisers to help with buyout discussions, though there’s no guarantee that talks will lead to a deal, Reuters reported.

To contact the reporter on this story: Nick Turner in New York at nturner7@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

©2018 Bloomberg L.P.