- GameStop (NYSE:GME) announced its intention to sell its operations in Canada and France as part of a broader evaluation of its international assets
- The company did not provide further details, outside of a simple media release regarding the potential sale, leaving the market speculating on which companies might be interested in acquiring GameStop Canada
- GameStop has faced declining revenue over the past several years, largely due to the continued rise in digital game sales
- GameStop stock (NYSE:GME) last traded at US$26.97
Popular video game retailer GameStop (NYSE:GME) announced its intention to sell its operations in Canada and France as part of a broader evaluation of its international assets.
The company did not provide further details, outside of a simple media release regarding the potential sale, leaving the market speculating on which companies might be interested in acquiring GameStop Canada.
GameStop has faced declining revenue over the past several years, largely due to the continued rise in digital game sales. Although the company experienced a temporary boost during the infamous 2021 short squeeze, it has struggled to maintain its market position since then.
Canada’s original video game retailer, EB Games, opened its first store in 1993. GameStop acquired EB Games in 2005 and rebranded all EB Games locations in Canada as “GameStop” stores in 2021.
By 2008, the Canadian division had grown to become the company’s largest international outfit with 300 stores.
As GameStop evaluates its international assets, the future of its Canadian and French operations remains uncertain.
GameStop Corp. is a U.S. video game, consumer electronics and services retailer. The company operates across Europe, Canada (but not for much longer), Australia, and the United States. It sells new and second-hand video game hardware, physical and digital video game software, and video game accessories.
GameStop stock (NYSE:GME) closed 0.11 per cent lower at US$26.97. Though it has been trading nearly 14 per cent lower since the year began, the stock has risen more than 91 per cent since this time last year.
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(Top photo: file photo of GameStop storefront.)
