GameStop Posts Disappointing Profit, Adding Pressure to Do Deal
(Bloomberg) -- GameStop Corp. declined after posting disappointing second-quarter earnings, putting pressure on the beleaguered video-game retailer’s management as it weighs a possible sale.
- The weak results potentially make it more desirable for GameStop to do a deal, though that’s been far from a sure thing in recent months.
- GameStop confirmed in its report that it “continues to engage with third parties regarding a possible transaction” and is working with financial adviser Perella Weinberg Partners LP.
- DealReporter said earlier this week that private equity firms Sycamore Partners and Apollo Global Management are GameStop’s two main suitors.
- In the meantime, GameStop expects comparable sales this year to range between a flat performance and a decline of 5 percent.
- The stock tumbled as much as 6 percent to $15.17 in extended trading. The shares were already down 10 percent this year.