GameStop Selling Spring Mobile Business, Sharpening Focus on Collectibles
GameStop is selling its Spring Mobile wireless retail business to Prime Communications for $700 million in a move that sharpens its focus on videogames and collectibles.
The sale, which is expected to close by year-end, includes 1,289 AT&T wireless stores and caps a months-long strategic review by GameStop’s board and outside financial advisors. Proceeds from the sale will be “reinvested” in the chain’s videogames and collectibles business to “drive (sales) growth,” GameStop said. GameStop has closed about 40 Spring stores this year.
The sale of Spring, which GameStop acquired in 2013, would complete the retailer’s exit from wireless retail business, which generated $803.6 million in revenue in the year ended Feb. 3. The company will be left with videogames and collectibles; the latter categories are sold through GameStop (just under 5,800 stores as of Feb. 3), as well as its 103 ThinkGeek and Zing Pop Culture and 48 Simply Mac (Apple re-seller) stores. The collectibles business posted revenue of $636.2 million in revenue in the year ended Feb. 3
Contact:
GameStop, Robert Lloyd, CFO, 817-424-2000, robertlloyd@gamestop.com
