? Venture Funding
-
Texas-based video game retailer GameStop (GME) has received a major boost in the form of investment from RC Ventures, which purchased a 9% stake in the company
-
RC Ventures is an investment firm managed by Ryan Cohen, co-founder of online pet-supply retailer Chewy (CHWY)
-
The firm purchased 5.8m of GameStop common shares, which makes it the third-largest investor of the retailer after BlackRock (17.28%) and Fidelity (14.72%)
-
Additionally, on August 28, 2020, Bank of America has established for GameStop and its subsidiaries an uncommitted letter of credit facility, in an amount not to exceed, in the aggregate:
-
$150m — at any one time from the date of the agreement through February 14, 2021
-
$75M — from February 15, 2021, through August 31, 2021, or the date Bank of America terminates the agreement
-
? Financial Performance
-
According to the latest quarterly report of May 2, 2020, GameStop’s revenue amounted to $1.02B, demonstrating a 34% loss compared to 1.55B in the prior-year period. The comparable-store sales of the company fell 30.4%, from the prior-year period
-
The decrease in revenue and store sales was caused primarily by the impact of temporary store closures to customer traffic in the United States, Canada and Europe due to the COVID-19 pandemic. However, the release of new gaming hardware and attendant software later this year should help the retailer to improve its position on the market
-
In February 2002, GameStop had its Initial Public Offering on the New York Stock Exchange under the symbol “GME”, with a pricing of $18 per share
-
As of the day of writing, GameStop shares sit at 7.65 $ price per share — their highest value since June 2019
? Products
-
GameStop is an international video game retailer with about 5.5 thousand stores in the U.S., Canada, Europe, Australia and New Zealand
-
There are several store brands under the company’s umbrella, including GameStop, EB Games, ThinkGeek and Micromania-Zing
