Major U.S.-headquartered specialty video game retailers GameStop Corp and Electronics Boutique Holdings Corp. have announced that registration documents relating to the merger of the two companies have been approved by the U.S. Securities and Exchange Commission.
Following the announcement, both companies have each scheduled Thursday, October 6, 2005, as the date for their respective annual stockholders meeting to consider and vote upon the proposed merger. The companies hope to close the merger in early October, shortly after receiving approval from their respective stockholders.
If completed, the merger between GameStop and EB would create a single company representing 20 to 30 percent of the overall market for video game products in the United States, and practically the entire retail market for used games. It's currently unknown whether EB and GameStop stores would keep their current monikers, or unite under one central name for branding purposes.
News of the SEC's approval has buoyed GameStop's stock, with it increasing over a dollar to $35.09 as of press time. Electronics Boutique's stock also reacted positively, also up over a dollar (though relatively less in terms of a percentage) to $65.55.