On Wednesday, the shares of the GameStop increased in worth by 18 percent after the announcement of the company that it will be selling its Spring Mobile Business.
The company released a statement stating that will be selling that division which the company owns and operates about 1289 AT&T Wireless stores.
The company will be selling the division for $700 million to the Prime Communications.
The shares of the GameStop prior to the announcement were halted but surged and touched an intraday high of $14.49 after the resuming of the trading.
According to the data of the Bloomberg, the surge of 18 percent which the company witnessed was the maximum in over 13 years.
The deal has been closed and the transactions are expected to be completed by the fourth quarter of the current fiscal year. The funds collected after the sale will be used by the company to pay the outstanding debt along with the repurchases of the fund share.
The company also stated that will be using a part of the proceeds for the reinvestment in the core business of video-game as well as collectables.
Executive Chairman of GameStop, Dan DeMatteo had stated in a press conference that this transaction will enable the company to improve as well as enhance their performance with a better focus on the industry of the video game along with the collectibles space which is growing rapidly.
The second quarter results of the company were reported in the month September which had surpassed the revenue but had missed the earnings.
The company will be reporting its reports for the third quarter of the current fiscal year on the 29th of November after the market closes.
The company, GameStop however is down by about 26 percent for the present year.
Source: Bloomberg, BusinessInsider
