April 18, 2005
Gamestop and Electronic Boutique Announce Merger
Gamestop this morning has agreed to acquire Electronic Boutique for a cash and stock deal worth $1.44 billion. Each Electronic Boutique shareholder will receive $38.15 in cash and 0.78795 shares of GME stock for each share they own. This represents a 34% premium ($55.18) to ELBO's Friday close. Not too shabby.The combined company will use the Gamestop name and have 3200 stores worldwide. It's a move that makes sense as both companies basically offer the same value propositiion to the market. Now they can join forces to battle the Best Buys, Targets, and Walmarts of the world. Game on! [Discuss]
