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GameStop Has Big Plans for the $700 Million It Made From Selling Spring Mobile

It’s no secret that GameStop is seeing some bad times financially. Earlier in 2018, the company saw a decrease in sales across the board. Its confirmation of potential buyout rumors has led many to worry over the company’s future (or lack thereof). To combat this, GameStop is implementing big-picture strategies and solutions. Most recently, the company announced it is selling its “Spring Mobile business, which owns and operates 1,289 AT&T wireless stores, to Prime Communications, L.P. for $700 million, excluding transaction fees [etc].”

GameStop will use that money to “pay off debts, fund share repurchases, reinvest in core video game and collectibles businesses to drive growth, or some combination of these options.” The company narrowing its portfolio’s focus will hopefully translate into better offerings in its primary services. Now that Best Buy’s Gamers Club Unlocked is dead and Amazon Prime has completely removed its preorder discount on video games, this is the perfect time for GameStop to show its value to the community.

Despite the store’s continuous expansions into the merchandise and collectibles market, GameStop is still primarily a video game store, and it’s essentially the last of a dying breed. We’ll see how long the company can keep going in this increasingly digital world, but suffice it to say that GameStop is making moves to last as long as possible.

[Source: Gamasutra and GameStop]