GameStop adds 507 stores with acquisition

GameStop Corp. has acquired three AT&T mobility banners, which will add 507 wireless units to its global base of stores. The purchase price wasn’t disclosed.



The company announced Tuesday that it has completed the acquisition of three national AT&T authorized retailers – Cellular World, Midwest Cellular and Red Skye Wireless – which boosts GameStop’s wireless store holdings 1,421 stores of a global 7,117 total. The acquisition makes GameStop AT&T’s largest authorized retailer and, says analysts, further reduces GameStop’s dependence on sales of video games.



“Video games are cyclical,” GameStop COO Tony Bartel said. “We said, ‘Let’s take our real estate experience and extra capital that we have and see if we can diversify.’”



The acquired stores are located in 26 states, with the lion’s share in Texas, Missouri and Oklahoma.



"Today's announcement showcases the strength of our relationship with AT&T and fortifies our diversification efforts," said Paul Raines, CEO of GameStop. "With the continued investments in our Technology Brands business, we are on track to achieve our goal of generating $200 million of operating earnings in this growing segment by the end of 2019."