Saw this while watching CNN's Headline News. I've always prefered Electronic Boutique to Gamestop. Then again I only buy computer games and don't own a console system. I'm sure there will be quite a few store closings. Just about everywhere there is one Electronic Boutique you can find a Gamestop.
http://money.cnn.com/2005/04/18/tech...reut/index.htm
Quote:
GameStop's shares rise after $1.4B buy
Investors cheer GameStop's purchase of video game shop Electronics Boutique.
April 18, 2005: 12:13 PM EDT
CHICAGO (Reuters) - GameStop Corp., the video game retailer, said Monday it has agreed to buy competitor Electronics Boutique Holdings Corp. for $1.44 billion in cash and stock, helping GameStop enter new international markets.
Electronics Boutique (Research) shares surged 35.4 percent in midday trade on the Nasdaq.
Electronics Boutique shareholders will receive $38.15 in cash and the equivalent of 0.78795 shares of GameStop Class A common stock for each Electronics Boutique share, the company said. That is a premium of 34.2 percent, based on Friday's closing prices for the stocks.
GameStop (Research), whose shares also jumped 11.3 percent, expects the deal to add significantly to its diluted earnings per share in the second half of its fiscal year 2005 and in 2006. It expects "meaningful" pretax savings, beginning in fiscal year 2006.
After the deal, GameStop said its Chairman and Chief Executive Richard Fontaine and Chief Operating Officer Daniel DeMatteo will keep those roles at the combined company.
Shareholders representing about 47 percent of Electronics Boutique's voting shares have already pledged their support for the deal, GameStop said.
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