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GameStop ends efforts to sell company; still looking for a CEO

The world’s largest video game and gaming console retailer has taken itself off the selling block.

GameStop said it has put an end to efforts to sell itself due to the “lack of available financing on terms that would be commercially acceptable to a prospective acquiror.” In June, the retailer announced it was undertaking a strategic review of a wide range of alternatives to enhance shareholder value, including a possible sale of the company.

As part of the review process, GameStop sold its Spring Mobile business. The sale, completed earlier this month, generated some $735 million in immediate cash proceeds. The retailer said it continues to evaluate the optimal use of the proceeds, which could include reducing the company’s outstanding debt, funding share repurchases, reinvesting in core video game and collectibles businesses to drive growth, or a combination of these options.

GameStop also said it is continuing its search for a permanent CEO and is working with a leading executive search firm. Board member and GameStop co-founder Daniel DeMatteo is currently serving as interim CEO. He took the reins in May following the abrupt resignation of Michael Mauler after only three months on the job.

GameStop operates over 5,800 stores across 14 countries.
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