Game Stop Buying Eb

[Raptrex 0]

CHICAGO (Reuters) - GameStop Corp. (GME.N: Quote, Profile, Research), the video game retailer, on Monday said it has agreed to buy competitor Electronics Boutique Holdings Corp. (ELBO.O: Quote, Profile, Research) for $1.44 billion in cash and stock, helping GameStop enter new international markets.
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 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.

I THINK THIS IS DUMB

[Johnny 1]

Great. Now Gamestop can spread it's evil to even more parts of the US.

[DjLuki 0]

ok what are you trying to say? why should we care wht they do..buy/sell companies.. we just want the games! i didn't get anything that you tried to tell.. maybe try to explain it..

[Grant 0]

i think this is dumb i hate the quality of games that gamestop has in stock or there expertise is horible and ebgames was one of my favrite game places and now that gamestop is buying them i hope they leave the ebgames location were its at since it more convinet than having it in a dfrent part of the state

[Johnny 1]

@DjLuki - You should very much care. Game shops have very different policies, and in this case, Gamestop's are terrible. For example, at Gamestop, you may never return a new game for a refund or a new game, no matter what the problem. That's just one of the many things that Gamestop does wrong.

[Unregistered 017 0]

There was a topic about this earlier... but anyway...I think this is a good move, hopefully some of EB's policiys will rub off on GameStop + I buy all my games somewhere else than both of these places.