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EB, GameStop Merger Approved By Stockholders
by Nich Maragos [PC, Console/PC, Mobile Phone, Mobile Console]
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October 6, 2005
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The merger between Electronics Boutique and GameStop came another step closer to fruition when the board of stockholders at both companies approved the impending deal. The final step is expected to happen on October 8th, with NYSE trading of the newly merged company beginning on October 10th.
This follows the recent completion by GameStop of the sale of $300 million in Senior Floating Rate Notes and $650 million in Senior Notes to investors, effectively a long-term loan to help fund the impending merger.
When completed, the merger between GameStop and EB will create a single company representing 20 to 30 percent of the overall market for video game products in the United States - according to reports, this will include a combined total of 3,800 stories, with 3,200 of them in the U.S., and nearly $4 billion in yearly revenue.
"We are proud of Electronics Boutique employees, whose world-class capabilities have enabled us to deliver outstanding performance," said EB Holdings Corp. CEO Jeffrey Griffiths. "As we become one organization, I am also pleased that our stockholders will have the opportunity to participate in GameStop's continued long-term growth in this fast-growing specialty retail sector."
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