After months and months of discussion and buyer rumors, GameStop’s board of directors has put the kibosh on plans to sell the company off.
The decision, according to a statement issued by the company, comes as a result of a lack of the sort of financing terms that would be appealing to a prospective buyer.
Instead, GameStop is now looking toward the funds it gained from the $725 million sale of its Spring Mobile business earlier this year to drive growth, potentially by paying off debt, funding share repurchases, or reinvesting in its core video game and collectibles businesses. All these options are up in the air, however, as the company continues to evaluate its options.
Rumors about potential buyers have been circulating since GameStop first confirmed it had been in “exploratory discussions” with private equity firms last summer, with the most recent being one from a few weeks back that said Sycamore Partners and Apollo Global Management were in the process of bidding on the company. At the time, sources said the sale could close in February but, given today's statement, the situation has taken a different turn.
The statement also mentions that GameStop is still in the process of hunting for a “highly qualified, permanent CEO” to fill the seat that has been held by interim CEO Shane Kim since last May.