Dallas - Video rental giant Blockbuster announced on Wednesday that it has sold Games Station Limited, its chain of 217 video game stores in the U.K., to European retailer The Game Group for about $150 million in cash.

Blockbuster purchased Gamestation in 2002, and grew the chain from 64 to over 200 locations.

"While we believe Gamestation is positioned for ongoing success, today's announcement underscores our intent to focus on our Blockbuster-branded assets in North America in support of our goal to grow our overall share of the video rental market, both in-store and online," said chairman and CEO John Antioco.

The company has also recently divested assets including Movie Trading Co. and Rhino Video Games, and has entered into an agreement to sell its Australian subsidiary.

Blockbuster said it will use a majority of the proceeds from the sale to pay down outstanding debt.

Related Links:
http://biz.yahoo.com/prnews/070502/aqw037.html?.v=14

http://www.blockbuster.com

http://www.gamegroup.plc.uk

http://www.gamestation.co.uk