Monday, April 18, 2005

Buying games at "EB GameStop"

Big news coming out of the video game retailers today as it was announced that Gamestop and EB Games will be merging into one entity. This will give the new company control of almost a quarter of the video game market. According to the press release, the deal will give EB stockholders $38.15 in cash, plus the equivalent of 0.78795 shares of GameStop for every share of EB stock. The deal is valued at approximately $1.44 billion with consideration consisting of approximately 70% cash and 30% common stock.

As a result of the sale, GameStop will be the surviving name. A conference call with management from both companies is scheduled for today (April 18) at 1:00p EST, with a new investor presentation to be posted online shortly thereafter.

You can check out the press release and an archive of the conference call at both companies' respective investor sites:

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