Massive video game retailer GameStop's is looking for a buyer, and it might've hooked two suitors: Private equity firms Sycamore Partners and Apollo Global Management. Reports suggest we'll find out for sure next month.
According to a source close to GameStop, Sycamore Partners and Apollo Global Management are reportedly bidding on the troubled franchise. Both companies declined to comment when Wall Street Journal approached for an official statement. GameStop likewise refused to offer any confirmation. GameSpot reports we might hear official word about an acquisition by mid-February.
Sycamore Partners is based in New York and "specializ[es] in retail and consumer investments." Some of its clients include Hot Topic, Dollar Express, and Staples. Apollo Global Management claims it "set the standard for superior risk-adjusted results with an integrated approach across private equity, credit and real assets, offering many paths to value."
Last summer, GameStop admitted it's looking for buyers. The Texas-based company has stores in 14 countries (where some still ply their trade under the old "EB Games" banner. EB Games was acquired by GameStop in 2005). The gradual rise of digital downloads and online shopping is proving problematic for GameStop, and its profits are see-sawing wildly as a result.
It's not hard to understand why GameStop wants to pass its problems off to someone else—especially when it has to deal with genius robbers who try to hide their face with plastic bags. Those are the days that make you say to yourself, "You know what? Someone else can run this gongshow. We're done here."