Article: EB Games, GameStop Merging
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Based on a recent press release from the two game retailers Electronics Boutique and GameStop have announced their intentions to merge the two companies. The resultant company will carry the Gamestop name and will now have over 3,800 retail stores internationally . EB shareholders will receive 38.15 USD in plus the of 0.78795 shares of GameStop common stock for each EB share. The total merger consideration per share is 55.18 USD and this results in a 34.2% premium to the closing EB stock. Though the merger seems finalized it is still up for approval by the remaining shareholders, as well as legal authorization.
Richard Fontaine, GameStop's Chief Executive Officer, said, "This is an exciting transaction for everyone involved -- our customers, our shareholders, and our two companies. This merger, which is a very positive step for GameStop, will enable us to enter new international markets and allow us to compete more effectively in the highly competitive U.S. video game industry." Either way Gamestop seems to have effectively defeated their major competition. For better or for worse it seems Gamestop is not going anywhere anytime soon.
-KSI PCFMAN
Sorces: Pcmag.com Cnet .com WiredMagaz ine
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Written by: KSI PCFMAN
Publish Date: Wednesday 20 April 2005 - 02:45:55
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