On Friday, GameStop revealed that it had raised nearly $933.4 million by selling 45 million shares. The struggling retailer decided to take this step as it continues to face challenges with customers shifting towards e-commerce platforms for their gaming purchases. This move sparked a surge in the company’s shares by more than 12% after the announcement.
Shares increase by over 12% after the sale
Some positive news for GameStop as its shares rose by more than 12% following the $933 million stock sale. After enduring a period of volatility and fluctuations, the company’s stock price experienced a significant boost post the announcement of the successful share sale. This increase comes as a welcome change for GameStop and its investors.
Stock The company did not disclose the specific price at which the shares were sold, but based on calculations, they were sold at an average price of $20.74 each, with shares currently trading at $21.93. GameStop plans to utilize the funds for general corporate purposes, potentially including acquisitions and investments. Despite expectations of a drop in first-quarter net sales, the stock surge indicates a positive outlook for GameStop in the market.
GameStop’s struggles with brick-and-mortar stores
Struggles: GameStop, a struggling videogame retailer, heavily relies on brick-and-mortar stores, which has become a challenge as customers increasingly turn to e-commerce platforms for purchasing video games and collectibles.
Impact of e-commerce on the company’s sales
The shift towards e-commerce has had a significant impact on GameStop’s sales, prompting the company to explore alternative strategies such as the recent stock sale to raise $933.4 million for general corporate purposes, including potential acquisitions and investments.
