GameStop used to be a major juggernaut in the videogame industry but the rise of digital game sales and other factors made it harder for the company to thrive lately. Last June, GameStop was exploring the option to sell itself to another company, and now, it looks like a new deal might be finalized soon.
According to The Wall Street Journal, at least two companies are bidding for GameStop, and a deal to purchase the gaming retailer could be announced in mid-February. WSJ reports that their source familiar with GameStop says that private equity companies Apollo Global Management and Sycamore Partners are in a bidding war to buy GameStop.
Apollo is a firm known for making investments in companies that have fallen out of favor. Apollo Equity co-president and lead partner Scott Kleinman said that Apollo is looking for investment opportunities that "others are unable or willing to figure out."
Meanwhile, Sycamore, which raised more than $4.75 billion USD in capital last July, is focused on consumer and retail investment, so it's easy to say why they're bidding for GameStop.
Epicstream will update you once an announcement about the GameStop deal is made.