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Retailer GameStop Acquires Rival Electronics Boutique for $1.4 Billion

Authored by Mark Hefflinger on April 18, 2005 - 9:09am.
Grapevine, Texas -- Video game retailer GameStop announced on Monday that it has agreed to acquire rival Electronics Boutique, for $1.4 billion in cash and stock. The combined company would count over 3,200 U.S. and 600 international retail stores, accounting for a combined nearly $4 billion in annual revenues. Reuters cited analysts who estimated the combined company would command around one-quarter of the video game retail market -- about the same as Wal-Mart. "This merger will enable us to enter new international markets and allow us to compete more effectively in the highly competitive U.S. video game industry. We are merging these two companies from a position of strength," said GameStop chairman and CEO R. Richard Fontaine. Texas-based GameStop and Pennsylvania-based Electronics Boutique expect the deal to close by May 2.
tags: Acquisition | Acquires | Boutique | Retailer GameStop | Rival Electronics |