[Updated] GameStop reportedly discussing buyout with private equity firms

Replace: GameStop issued a brief statement confirming it’s in “exploratory discussions with third events concerning a possible transaction,” including “There could be no assurance any settlement will outcome from these discussions. GameStop doesn’t intend to make any extra feedback concerning these discussions except and till it’s applicable to take action.”

Struggling retail chain GameStop is discussing a possible buyout with personal fairness corporations, according to Reuters. The report says that one of many personal fairness corporations is Sycamore Companions and that GameStop has employed a monetary advisor to assist with the talks, although there’s no assure deal will come to fruition.

Based in 1984 and as soon as a mainstay for avid gamers, GameStop has struggled to deal with competitors from on-line retailers like Amazon and digital distribution platforms together with Steam, even after a number of makes an attempt to diversify its enterprise mannequin. For instance, final fall GameStop introduced a used recreation subscription service, however that was shelved, reportedly because of issues with the chain’s point-of-sale system. Regardless of different efforts, together with promoting secondhand video games and units and the acquisition of novelty maker ThinkGeek in 2015, the company’s stock has fallen steadily since November 2013, when it hit $56.53 a share, to $13.96 now.

Reuter’s report comes a few month after investor Tiger Management sent a letter to GameStop, asking it to launch a strategic evaluate of its enterprise mannequin. Round that point, CEO Michael Mauler also resigned after only three months in the position, citing private causes. Microsoft Xbox government Shane Kim began serving as interim CEO initially of June.

Sycamore Companions stated it has no remark. TechCrunch has additionally contacted GameStop.