GameStop and Electronics Boutique Merge

Ev!L-aLphA · Apr 18, 2005, 08:10 PM

The nation's two largest videogame retailers announced today that their companies have reached an agreement to merge. GameStop is taking the primary position, merging EB into their corporation and the new company will remain named GameStop Corp.

Under the terms of the agreement, Electronics Boutique Holdings Corp. (Electronics Boutique) shareholders will receive $38.15 in cash, plus the equivalent of 0.78795 shares of GameStop Corp. (GameStop) Class A common stock for each share of Electronics Boutique. Based on the closing price of GameStop's Class A common stock of $21.61 on Friday, April 15, 2005, the stock component of the per share merger consideration is $17.03. The total merger consideration per share of $55.18 represents a 34.2% premium to the closing price of Electronics Boutique's stock as of Friday, April 15, 2005. The total transaction value is approximately $1.44 billion with consideration consisting of approximately 70% cash and 30% common stock. GameStop intends to fund the cash portion of the transaction through the issuance of $950 million in senior bonds and excess cash.

Comments by both CEOs reveal that the motivation behind the merger was to compete on a global scale, something both felt couldn't be done alone. However, I bet money was a big factor, too. Oh, and in other buyout news, Adobe bought Macromedia.

Source: Shack News

pr0digal jenius · Apr 18, 2005, 08:19 PM

Next up: Intel and AMD tie the knot

Drakon · Apr 18, 2005, 08:26 PM

Quote:

Originally Posted by pr0digal jenius

Next up: Intel and AMD tie the knot

You're so "optimistic," John

I'd like to go to that ceremony. Should be full of drama

technonerd · Apr 18, 2005, 08:28 PM

I live in small town Grande Prairie, they have futureshop and EB. When it comes to buying games, I perfer EB because they have huge selection and more than Futureshop. FS have very small selection of dvd, games and music, I usally buy stuff from amazon.

Other thing, the game release takes forever. My firend pre-ordered doom3 at FS and I did in EB. EB came out on tuesday and FS came out friday.

I hope EB stays in GP.

Sargentwhitey · Apr 18, 2005, 08:48 PM

So... in the malls where they have a Gamestop AND EB Games... what happens to the EB?

gangsterant16 · Apr 18, 2005, 09:09 PM

there probally just gonna change the eb store to gamestop so i guess they gonna have 2 game stops i guess they gonna be makin mad money i mean massive!

Dom · Apr 18, 2005, 11:02 PM

Damn Funcoland...

El Kapitano · Apr 18, 2005, 11:41 PM

Quote:

Originally Posted by Dom

Damn Funcoland...

Huh?

EcPercy · Apr 19, 2005, 12:01 AM

Looks like I am going to have to find another place to buy games. I hate Gamestop (Babbages). Between the high prices and the lack of knowledge I am pretty hesistant to even walk in the store.

EB on the other hand. I always see the same faces at the one I go to and they actually talk like they own every system and play every game that comes out. That is what keeps me coming back.

Tipstaff · Apr 19, 2005, 12:15 AM

Quote:

Originally Posted by El Kapitano

Huh?

I'm surprised you never heard of these guys before El. Funcoland=Babbages=Gamestop (and now they've added EB to their list).

Speaking of Funcoland,

Hey Dom.. get a load of THIS page. Think you'll get a chuckle outta it.

-Tip

Dom · Apr 19, 2005, 12:20 AM

Quote:

Originally Posted by Tipstaff

I'm surprised you never heard of these guys before El. Funcoland=Babbages=Gamestop (and now they've added EB to their list).

Speaking of Funcoland,

Hey Dom.. get a load of THIS page. Think you'll get a chuckle outta it.

-Tip

Hate those guys, they always ripped-off kids...stealing their money with their trade-in program.

Drakon · Apr 19, 2005, 12:36 AM

Quote:

Originally Posted by Dom

Hate those guys, they always ripped-off kids...stealing their money with their trade-in program.

Ohhh Yeah. I took in GT3 and Virtua Fighter 4 and they were going to give me $5 for them both. I said forget that...

Malus · Apr 19, 2005, 04:00 AM

Erm, did you guys skip over the fact that Adobe is buying Macromedia? That's just insane.

Dom · Apr 19, 2005, 04:10 AM

What's wrong with Adobe?

Nuke209 · Apr 19, 2005, 04:58 AM

Haha, it's kinda funny because

I live in Saint Paul and close to Maplewood
In Maplewood, there's an EB in the Mall and just right outside of the Mall is an EB and right next to the mall is a Gamestop, lol and the EB next to the mall was just built

Apr 18, 2005, 08:10 PM	#1
Ev!L-aLphA \| n f e c t e D Join Date: Sep 2003 Location: California Posts: 4,111 Rep Power: 0	GameStop and Electronics Boutique Merge The nation's two largest videogame retailers announced today that their companies have reached an agreement to merge. GameStop is taking the primary position, merging EB into their corporation and the new company will remain named GameStop Corp. Under the terms of the agreement, Electronics Boutique Holdings Corp. (Electronics Boutique) shareholders will receive $38.15 in cash, plus the equivalent of 0.78795 shares of GameStop Corp. (GameStop) Class A common stock for each share of Electronics Boutique. Based on the closing price of GameStop's Class A common stock of $21.61 on Friday, April 15, 2005, the stock component of the per share merger consideration is $17.03. The total merger consideration per share of $55.18 represents a 34.2% premium to the closing price of Electronics Boutique's stock as of Friday, April 15, 2005. The total transaction value is approximately $1.44 billion with consideration consisting of approximately 70% cash and 30% common stock. GameStop intends to fund the cash portion of the transaction through the issuance of $950 million in senior bonds and excess cash. Comments by both CEOs reveal that the motivation behind the merger was to compete on a global scale, something both felt couldn't be done alone. However, I bet money was a big factor, too. Oh, and in other buyout news, Adobe bought Macromedia. Source: Shack News __________________ R.I.P 8/8/04 4/21/08

Apr 18, 2005, 08:48 PM	#5
Sargentwhitey Has a JOB.. Join Date: Aug 2004 Location: NJ Posts: 1,473 Rep Power: 0	So... in the malls where they have a Gamestop AND EB Games... what happens to the EB? __________________ Mobile:Intel Celeron M 1.5GHz, 40GB WD, 1GB PC24000, Intel Mediocre Graphics 2, SB Audigy 2 Notebook

Apr 18, 2005, 09:09 PM	#6
gangsterant16 The tRu NigGa tO CoME 2 Join Date: Jul 2004 Location: New Jersey Posts: 153 Rep Power: 0	there probally just gonna change the eb store to gamestop so i guess they gonna have 2 game stops i guess they gonna be makin mad money i mean massive! __________________ AMD Athlon(tm) 64 3700+ 2.4ghz(san diego) Asus Av8 motherboard revision 2 i think lol Ati Radeon x800pro Default Clock 1.5 gigs of corsair xms 3200 (2sticks of 256 and 2 of 512) Sound Blaster X-Fi Fatality Logitech 680's (1000 watts max)! 80gig sata seagate hard drive and a 100gig wd "main hd' dvd drive, dvd burner 520 watt OKIA psu(suck ass psu!)

Apr 19, 2005, 04:00 AM	#13
Malus BSD SMASH! Join Date: May 2002 Location: A rabbit hole. . . Posts: 1,170 Rep Power: 0	Erm, did you guys skip over the fact that Adobe is buying Macromedia? That's just insane. __________________ quad (FreeBSD/amd64 8-CURRENT): Intel Q6600 - Asus P5E-VM HDMI - 2x2 GB Kingston PC6400 DDR2 Ram - Seagate 320GB 7200RPM HD - 2xSeagate 1TB 7200RPM HD in RAID 1 via ZFS - Lite-On 20x DVD Multi Recorder - Coolermaster Centurion 5 router (FreeBSD/amd64 8-CURRENT): Intel E4500 - Intel D945GCNL - 2 GB PC6400 Mushkin Ram - Lite-On 48x24x48x16 - Seagate 320GB 7200RPM HD - Silverstone SST-SG02-F wanderer (FreeBSD/i386 7-CURRENT): Lenovo Thinkpad T61p mini (OS X 10.5): Intel Core 2 Duo @ 1.8Ghz, 4 GB Mushkin PC5400 Ram - Headroom MicroDAC Portable sound: Rockboxed iPod Video -> Westone UM2's Not-So-Portable Sound: Headroon MicroDAC -> Singlepower PPX3-SLAM -> Grado RS-1's or Beyerdynamic DT-880's Very-Not-Portable-Sound: Squeezebox v3 -> Denon AVR-1507 -> B&W 683's & Sunfire HRS-10

Apr 19, 2005, 04:58 AM	#15
Nuke209 DriverHeaven Senior Member Join Date: Jul 2002 Location: St. Paul Posts: 568 Rep Power: 0	Haha, it's kinda funny because I live in Saint Paul and close to Maplewood In Maplewood, there's an EB in the Mall and just right outside of the Mall is an EB and right next to the mall is a Gamestop, lol and the EB next to the mall was just built __________________ 2006 Subaru Impreza WRX

Apr 18, 2005, 08:19 PM	#2
pr0digal jenius Delete Me Join Date: Mar 2004 Posts: 14,648 Rep Power: 0	Next up: Intel and AMD tie the knot

Apr 18, 2005, 08:28 PM	#4
technonerd DriverHeaven Senior Member Join Date: Jul 2003 Location: Calgary, Alberta, Canada Posts: 594 Rep Power: 0	I live in small town Grande Prairie, they have futureshop and EB. When it comes to buying games, I perfer EB because they have huge selection and more than Futureshop. FS have very small selection of dvd, games and music, I usally buy stuff from amazon. Other thing, the game release takes forever. My firend pre-ordered doom3 at FS and I did in EB. EB came out on tuesday and FS came out friday. I hope EB stays in GP.

Apr 18, 2005, 11:02 PM	#7
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	Damn Funcoland...

Apr 19, 2005, 12:01 AM	#9
EcPercy HardwareHeaven Senior Member Join Date: Jul 2002 Location: Iraq Posts: 1,535 Rep Power: 0	Looks like I am going to have to find another place to buy games. I hate Gamestop (Babbages). Between the high prices and the lack of knowledge I am pretty hesistant to even walk in the store. EB on the other hand. I always see the same faces at the one I go to and they actually talk like they own every system and play every game that comes out. That is what keeps me coming back.

Apr 19, 2005, 04:10 AM	#14
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	What's wrong with Adobe?