GameStop will use proceeds from the recent $700 million sale of its Spring Mobile business to reduce outstanding debt, repurchase shares, or reinvest in the core gaming and collectibles business. The company announced the completion of the sale for the mobile company, which owns and operates 1,289 AT&T wireless stores, on Wednesday.
Spring Mobile was purchased by Prime Communications.
“We are pleased to successfully complete this transaction and begin 2019 with an increased focus on the video game industry and the rapidly-growing collectibles space. These are areas where we are well positioned to leverage the GameStop brand and capitalize on our competitive position,” said Dan DeMatteo, executive chairman of GameStop’s board of directors.
GameStop, along with its board of directors and outside financial advisors will continue to conduct an ongoing review of “strategic and financial” alternatives to boost shareholder value. This review will also determine exactly how proceeds from the sale will be used.
The company first entered into a definitive agreement to sell off the Spring Mobile business in November 2018. Despite being the largest brick-and-mortar games retailer in the U.S., the company has struggled with its relevance in an era of digital game sales and popular online retailers like Amazon which offers more competitive pricing and direct shipment to consumers.