GameStop surges after a report says it could be taken private

Graham Rapier

Jun 19, 2018, 01:03 IST

Shares of GameStop surged more than 10% Monday following a Reuters report that suggested the private equity firm Sycamore Partners is interested in taking the video-game chain private.
The wire service reported that GameStop had hired a financial advisor to assist in discussions with private equity firms including Sycamore.
Headquartered in New York, other Sycamore retail investments include Hot Topic, Belk, and Talbots. The firm has some $3.5 billion in capital under management, according to its website.
GameStop has struggled to keep its footing in an increasingly digital video-game industry that's being dominated by players like Steam and platform-specific online stores that allow consumers to forego the traditional method of purchasing a physical game disc.
Shares of GameStop have declined more than 60% in the past five years.
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