GameStop announced that they are no longer aiming to sell their company. GameStop had been looking for a buyer of their retail chain for quite some time but they issued a statement today that stated they would longer sell the company due to a lack of available financing that would be commercially acceptable to a prospective acquirer.
While it was implied that GameStop had found investors, they may not have been able to find lenders to invest in the company.
With the video game industry (as well as the retail industry) moving into a digital era, more and more businesses are looking to either sell off or close up their tried and true brick and mortar stores. Internet sales of games have been steadily on the rise and more and more consoles are either adding features or are being built specifically for digital streaming of games. Almost every game released today comes with a digital download option as well.
What would have been a sure-fire deal to investors and lenders a decade ago now comes off as a major risk due to the nature of today’s industry. Can you really blame lenders for being skeptical in 2019?
We will have to wait and see what GameStop does from here in order to stay relevant in an ever-growing digital industry.
