Presenting GameStop Boutique

[Shockeye]

From the "There Can Be Only One Dept"...

GameStop to Buy Electronics Boutique

55 minutes ago   Business - AP

GRAPEVINE, Texas - Video game retailer GameStop Corp. said Monday it agreed to acquire rival Electronics Boutique Holdings Corp. for $1.44 billion in a deal that will more than double the number of Gamestop's outlets. Shares of Electronics Boutique climbed 28 percent in early trading.   

The deal will make Gamestop one of the biggest video game retailers with annual revenue of about $3.8 billion and more than 3,200 stores worldwide.

The boards of directors of each company have unanimously approved the transaction. The deal is subject to approval by their shareholders and antitrust clearance.

Under the terms of the deal, Electronics Boutique shareholders will receive $38.15 in cash, plus the equivalent of 0.78795 shares of GameStop Class A common stock, for each Electronics Boutique share. Based on Gamestop's Friday closing price of $21.61, the stock portion of the offer is $17.03.

The total acquisition price of $55.18 represents a 34.2 percent premium to Electronic Boutique's Friday closing stock price of $41.12.

Shares of Electronics Boutique shot up $11.48, almost 28 percent, to $52.60 in morning trading on the Nasdaq Stock Market, while Gamestop shares fell 81 cents to $20.80 in trading on the New York Stock Exchange.

When the merger is complete, Gamestop's Chief Executive Officer R. Richard Fontaine and Vice Chairman and Chief Operating Officer Daniel A. DeMatteo will keep their positions in the new company. Other positions are under discussion and will be announced as the acquisition proceeds, Gamestop said.

Gamestop said it expects the acquisition will add "significantly" to its fully diluted earnings per share starting in the second half of fiscal year 2005.

James Kim, and his affiliates, owners of approximately 47 oercent of Electronics Boutique's voting shares, and Leonard Riggio, and his affiliates, owners of approximately 16 percent of GameStop's voting power, have each agreed to vote their shares in favor of the transaction.

Gamestop, which now operates 1,826 stores in the United States, Puerto Rico and Ireland, said the deal would allow it to enter new markets overseas and better compete in the competitive domestic video game industry. Electronics Boutique currently operates 2,000 stores in the North America, Europe, Australia and New Zealand — primarily under the names EB Games and Electronics Boutique..

Gamestop said it plans to fund the cash portion of the deal, which accounts for about 70 percent, through selling $950 million in senior bonds and excess cash.

Let's see, Gamestop/Babbages/EB Games uber alles. This is another great win for the consumer.

[NiX]

Now I have to find out how this is going to affect my job. Oh boy. Word through the grape vine is that EBs up here are scrambling to figure out what the fuck is going on. We'll see if there's panic abound when I head into work today. This has just spiced up my day. HURRAY FOR SHOCKEYE!

[Riggswolfe]

I love EB and never set foot into a Gamestop. I oughta go to my local EB and see what the grunts feel about it all.That, and there is a hot chick named Pandora in my local EB and that alone makes me want to visit it.

[stray]

Hmm...I would have thought EB would buy out Gamestop, not the other way around. I always thought EB was the more popular (and lucrative) of the two.

[Viin]

I always thought GameStop did better, they seem to carry more games anyhow.. though EBgames has more PC games. But I don't care for either of them, I do most of my shopping at BestBuy.

Too bad I don't own any EBgames stock.

[HaemishM]

Fuck ginormous mergers. They almost always end up in cutting jobs because of obvious employment redundancies, shittier service and products, and inflated prices. YAY FOR PROGRESS!

I haven't been in a Gamestop for years, because their prices were higher and their selection shittier.

Fuckers.

[NiX]

Too bad I don't own any EBgames stock.

I failed to purchase stocks last month when I was given the opportunity as an employee. All because my manager neglected to give me the proper contact. I'm just a LITTLE bit upset about. Just a little.

[Shockeye]

Too bad I don't own any EBgames stock.

I failed to purchase stocks last month when I was given the opportunity as an employee. All because my manager neglected to give me the proper contact. I'm just a LITTLE bit upset about. Just a little.

Soothe yourself with J.Lo's rear. Let its warming rays calm you.

[Morfiend]

Does that mean my local EB is going to cover up all the windows to make it really dingy, and put the heating on to about 5 degrees over the outside temp. Oh yeah, and cultivate that musky BO smell?

Bummer. I kind of liked a clean, cool, nonsmelly place to buy games.

[Furiously]

Damn - how am I going to keep my promise to never shop at a gamestop now. (They've fucked me over 2x on preorder goodies.)

[schild]

I hate Gamestop with all my soul.

There aren't words for what I'm thinking right now.

[Shockeye]

I hate Gamestop with all my soul.

There aren't words for what I'm thinking right now.

And don't forget that Jason Lee is a Scientologist.



I love kicking you when you're down.

[schild]

I think I'm going to crawl back into bed. 14 hours of sleep isn't enough on gray days like this.

[Paelos]

I think I'm going to crawl back into bed. 14 hours of sleep isn't enough on gray days like this.

Grab a scotch and take it like a man!

Seriously though, you people still go to stores for games? I buy everything online.

[schild]

Seriously though, you people still go to stores for games? I buy everything online.

I hate the internet. Particularly that googleplace.

[Furiously]

I am starting to <3 the Fry's 3 blocks from my house.

[Alkiera]

Hrm.  The mall I frequent has both a Gamestop and an Electronic's Boutique.  About 200 yards from each other.  I usually shop both, and buy what I want from the place that has it, or that has it cheaper(typically used games, only rarely buy new anymore).

I'm guessing that they won't maintain 2 stores that close to each other...


Alkiera

[Viin]

Hrm.  The mall I frequent has both a Gamestop and an Electronic's Boutique.  About 200 yards from each other.  I usually shop both, and buy what I want from the place that has it, or that has it cheaper(typically used games, only rarely buy new anymore).

I'm guessing that they won't maintain 2 stores that close to each other...

Or maybe... they are going to be like Starbucks and have a store on every corner! woo!

[MahrinSkel]

Both are in a dying niche: Mall game software sales.  Between Walmart/Best Buy (which don't have to split their margins with the malls, and BB tends to have a lot more shelf space) and Internet sales, they're pretty much getting creamed.  I think the used games are all that's keeping them going, and Blockbuster rentals and liquidations have to be eating into that (not to mention Gamefly and the Blockbuster equivalent that just started).

But yeah, how many of those EB stores are colocated in malls with Gamestops, and will close now?  Other than Gamestop sewing up what's left of the niche as their exclusive turf, I don't see much of a win here.

--Dave

[Morfiend]

Maybe its that my area is very urban, but the 2 EB games that are kind of close to my house, are always full. And there is almost always some one buying some thing. Maybe not enough, but they sure seemed to be doing well for themselves.

[Trippy]

I don't like the GameStop's in my area either, so this is potentially very bad news depending on how they restructure the retail operations. I also have the 10% ebgames.com discount through GameSpot Complete and if I lose that GS is going to be losing a member.

[NiX]

So far as I've been informed it's just a name change for the canadian stores. Apparently the US stores and the Ireland stores will take up bigger changes. What those changes include is beyond me. Today went as normal though. A few of the dreamcatcher people came into to mock us over the merger. They're just mad that they make shitty games.

Edit: Name change is to GameStop INC. Everyone thats heard of the merger hates the name change. Boo for us it seems.

Edit 2: Pfffft. Painkiller sucked, in my opinion.

[schild]

They're just mad that they make shitty games.

Yea, I know. Painkiller was just terrible.

Remember kiddies, learn to use your sarcasm tags.

[Jayce]

That, and there is a hot chick named Pandora in my local EB and that alone makes me want to visit it.

I'd caution you about getting together with her "in that way" but that joke pretty much tells itself.

Thread related:  Best Buy 4TW!  I haven't shopped at EB or Gamestop except for used Xbox titles in a long time.  So I guess this is an /agree with Mahrin.

[Mesozoic]

Perhaps this kind of merger will hasten the end of the boxed PC game. 

I look forward to getting all my games as direct downloads from indie developers.  I'd rather see a thousand little guys coming up with a thousand unique little games than pay a retailer and a publisher money to shit out Popular Game Franchise X+1, More Expensive Edition.

[Sky]

Sky no like download. Sky like physical media. Sky go along with direct distro but mail order thxplzdrvwhat?

[Shockeye]

Sky no like download. Sky like physical media. Sky go along with direct distro but mail order thxplzdrvwhat?

Unless you are Rickey be Rickey, you don't get to use 3rd person. Thank you.

[kaid]

I tend to wind up at gamestop in town because walmart and bestbuy get new games up to a week after game stop does. I don't know why but the big players in Green Bay are VERY slow to get new things. Our bestbuy used to be very good but it has been going downhill bad over the last year or so.

I don't see this making much of a change basically it will mean closing down of redundant stores which dosn't bother me much because EB and gamestop in our area always has the exact same stuff for the same prices.

kaid

[Merusk]

Our bestbuy used to be very good but it has been going downhill bad over the last year or so.

I'm probably completly wrong, but I'm gussing it's because they're being serviced by a local Distribution warehouse. The shipments go there first, and then the day your local Best Buy stores get is based on their normal restock day. If the warehouse gets the game after your store's restock day then that store won't get the game until it's next restock.  I.E. Restock shipments come in on Monday, warehouse gets game on Tuesday you're SOL until the next Monday.

Or it could be the simple answer of, the employees are lazy and won't shelve it until the management forces them to.

[Sky]

Sky no like download. Sky like physical media. Sky go along with direct distro but mail order thxplzdrvwhat?

Unless you are Rickey be Rickey, you don't get to use 3rd person. Thank you.

Don't tempt The Sky, lest I fall and bust up little chickens.