GameStop confirms working with Perella Weinberg on potential sale; in talks with with third parties
06 SEP 2018
GameStop [NYSE:GME] today confirmed it is working with Perella Weinberg on a "comprehensive review of strategic and financial alternatives," and said it is in talks with with third parties regarding a possible transaction.
This news service reported yesterday that the video game retailer was working with Perella Weinberg to explore a sale. Sycamore Partners and Apollo Global Management are the two main parties pursuing the company, sources familair with the situation said.
The publicly traded company has USD 630m in LTM EBITDA, making for a mid 3x EBITDA multiple based on its USD 1.43bn market cap and USD 818m in total debt.
In May, the company received a letter from shareholder Tiger Management calling for a strategic review on account of management changes and a decline in shareholder value.
The company made the disclosure in its 2Q results statement. It is holding its conference call at 5:00 p.m. ET.
Sullivan & Cromwell and Pepper Hamilton are the company's legal advisors to assist in the review process.
Press release (excerpt):
The company also confirmed that it continues to engage with third parties regarding a possible transaction as part of a comprehensive review of strategic and financial alternatives initiated by the company’s board of directors. The ongoing process includes a thorough evaluation of a full range of alternatives to enhance shareholder value.
Dan DeMatteo, executive chairman of GameStop’s board of directors, stated, “As our teams prepare for a busy and exciting holiday period, our board of directors, with the support of our financial and legal advisors, continues to conduct a comprehensive review of strategic and financial alternatives, including, but not limited to, a potential sale of the company.”
The company noted there can be no assurance that the board’s review will result in any transaction. The company does not intend to discuss or disclose further developments related to its review unless and until further disclosure is appropriate. The company and board of directors have been working with Perella Weinberg Partners LP as financial advisor and Sullivan & Cromwell LLP and Pepper Hamilton LLP as legal advisors to assist in the review process.