GameStop buys Electronic Boutique for $1.4 billion - Tilted Forum Project Discussion Community

Cobalt_60 · 04-18-2005, 11:25 AM

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.

Coppertop · 04-18-2005, 11:55 AM

I prefer to buy my games online, but now that I have some console games I may want to trade in, this may affect me if some stores close.

Here's to hoping this may lead to price drops (yeah, right).

Bacchanal · 04-18-2005, 12:04 PM

We just got GameStop in Wichita in the last maybe 2-3 years, and that's the only place I go for games ever since I found out about them (plus they seem to give the best price when buying games from the consumer). I used to look around at EB, but their stores here are in the mall, and tiny.

This is good news as far as I'm concerned.

Cynthetiq · 04-18-2005, 12:14 PM

interesting... i guess that's the reason why there's a post at the local one announcing it's closing at the end of the month.

Nikilidstrom · 04-18-2005, 02:06 PM

While Gamestop is typically better then EB IMO, I have an inherent distrust in any and all coporate consolidation. Lack of competition is never good for the consumer. Have ya checked your cable bill lately?

Wingless · 04-18-2005, 09:28 PM

Holy fucking shit! Sorry, I work at a GameStop, and actually this is huge news to me.

GameStop and EB both have their advantages and disadvantages but with the two game stores merging, it should be the best of both worlds. Since my store is in the mall, I doubt that our shop will be closing...

Kodega · 04-18-2005, 11:03 PM

Nikilidstrom, that's why I switched to saltelite. Yea, rain makes it go down, but I'm saving a ton of money.

Also, I buy most of my games at Walmart anymore. Cause Walmart never tries to sell me an opened games with scratches on the disc as "New". Or if they don't have it I try Best Buy. I really can't stand Game Stop anymore though if I need to preorder that's where I'll go and only begrudgingly.

Bratwurst · 04-19-2005, 02:08 PM

lately I have been buying games at www.gogamer.com.

hrdwareguy · 04-19-2005, 03:41 PM

Many years ago, I used to work at a Software-Etc store. In the same mall as a Babbages. In 1995 or 96 the two stores combined to form a parrent company called Neostar. With the combined purchasing power of both stores, Neostar began spending money like mad. Unfortunately for them, revenue was not great enough to offset the expenses. Neostar began bankruptcy procedings (if I remember correctly). At this time, Barnes & Noble (who originally owned Software-Etc before they grew up to spin off on their own) purchased Neostar. Barnes and Noble renamed a bunch of the stores Gamestop. Aparrently some stores retained their Software-Etc and Babbages names. In November of 2004, Barnes & Noble spun off Gamestop into their own entity. It seems they are now buying EB.

I wonder how long it will be before the new Gamestop/EB company overextend themselves and Barnes & Noble steps back in to pick them back up.

G5_Todd · 04-21-2005, 07:09 PM

i prefer buying my games in the stores in case its terrible or something is wrong that way i can exchange it

04-18-2005, 12:14 PM	#4 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	interesting... i guess that's the reason why there's a post at the local one announcing it's closing at the end of the month. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

04-18-2005, 09:28 PM	#6 (permalink)
Wingless Psycho Location: Metro Detroit, Mich, USA	Holy fucking shit! Sorry, I work at a GameStop, and actually this is huge news to me. GameStop and EB both have their advantages and disadvantages but with the two game stores merging, it should be the best of both worlds. Since my store is in the mall, I doubt that our shop will be closing... __________________ Tommy Nibs is a funny word. So here I am, above palm trees, so straight and tall... You are, smaller getting smaller, but I still see... you. Jimmy Eat World - Goodbye Sky Harbor

04-19-2005, 02:08 PM	#8 (permalink)
Bratwurst Insane Location: La la land	lately I have been buying games at www.gogamer.com. __________________ 40

04-19-2005, 03:41 PM	#9 (permalink)
hrdwareguy "Officer, I was in fear for my life" Location: Oklahoma City	Many years ago, I used to work at a Software-Etc store. In the same mall as a Babbages. In 1995 or 96 the two stores combined to form a parrent company called Neostar. With the combined purchasing power of both stores, Neostar began spending money like mad. Unfortunately for them, revenue was not great enough to offset the expenses. Neostar began bankruptcy procedings (if I remember correctly). At this time, Barnes & Noble (who originally owned Software-Etc before they grew up to spin off on their own) purchased Neostar. Barnes and Noble renamed a bunch of the stores Gamestop. Aparrently some stores retained their Software-Etc and Babbages names. In November of 2004, Barnes & Noble spun off Gamestop into their own entity. It seems they are now buying EB. I wonder how long it will be before the new Gamestop/EB company overextend themselves and Barnes & Noble steps back in to pick them back up. __________________ Gun Control is hitting what you aim at Aim for the TFP, Donate Today

04-21-2005, 07:09 PM	#10 (permalink)
G5_Todd Junkie Location: Reichstag	i prefer buying my games in the stores in case its terrible or something is wrong that way i can exchange it __________________ "....and when you men get home and face an anti-war protester, look him in the eyes and shake his hand. Then, wink at his girlfriend, because she knows she's dating a pussy." -General Franks

04-18-2005, 11:55 AM	#2 (permalink)
Coppertop Getting Medieval on your ass Location: 13th century Europe	I prefer to buy my games online, but now that I have some console games I may want to trade in, this may affect me if some stores close. Here's to hoping this may lead to price drops (yeah, right).

04-18-2005, 12:04 PM	#3 (permalink)
Bacchanal Laid back Location: Jayhawkland	We just got GameStop in Wichita in the last maybe 2-3 years, and that's the only place I go for games ever since I found out about them (plus they seem to give the best price when buying games from the consumer). I used to look around at EB, but their stores here are in the mall, and tiny. This is good news as far as I'm concerned.

04-18-2005, 02:06 PM	#5 (permalink)
Nikilidstrom Stick it in your five hole! Location: Michigan, USA	While Gamestop is typically better then EB IMO, I have an inherent distrust in any and all coporate consolidation. Lack of competition is never good for the consumer. Have ya checked your cable bill lately?

04-18-2005, 11:03 PM	#7 (permalink)
Kodega Crazy	Nikilidstrom, that's why I switched to saltelite. Yea, rain makes it go down, but I'm saving a ton of money. Also, I buy most of my games at Walmart anymore. Cause Walmart never tries to sell me an opened games with scratches on the disc as "New". Or if they don't have it I try Best Buy. I really can't stand Game Stop anymore though if I need to preorder that's where I'll go and only begrudgingly.