June 19, 2018 / 12:21 PM / in a month

GameStop says in talks for possible transaction

(Reuters) - Videogame and electronics retailer GameStop Corp (GME.N) confirmed on Tuesday that it is in exploratory talks with third parties about a possible transaction.

The GameStop store sign is seen at its shop in Westminster, Colorado January 14, 2014. REUTERS/Rick Wilking

On Monday, Reuters reported that the Grapevine, Texas-based company was in discussions with private equity firms about a potential deal after receiving buyout interest. Sycamore Partners is one of the firms that has expressed interest, Reuters reported.

GameStop’s shares, which ended about 9 percent higher on Monday, dipped 1.3 percent in choppy trading before the bell on Tuesday.

The company, in a statement, said there can be no assurance that an agreement will result from its discussions.

Like most brick-and-mortar retailers, GameStop has suffered from heightened competition from online companies including Amazon.com Inc (AMZN.O).

Games retailers have also had to cope with a decline in physical video game sales, although GameStop has partly weathered these declines by expanding into used video games and devices as well as digital products.

In May, GameStop Chief Executive Officer Michael Mauler stepped down after only three months on the job. GameStop said his sudden departure was for personal reasons.

In June, the company tapped former Microsoft Xbox executive and board director Shane Kim as interim CEO.

Reporting by Munsif Vengattil in Bengaluru; Editing by Sai Sachin Ravikumar

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