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GameStop crashes to 14-year low after board terminates plans to sell the company

Jonathan Garber   

GameStop crashes to 14-year low after board terminates plans to sell the company
Stock Market1 min read


GameStop was down more than 27% Tuesday after its board of directors pulled the plug on a sale of the company. Selling pushed shares to a low of $11.16 apiece, a level last seen in April 2005.

"In June 2018, GameStop's Board, together with outside financial and legal advisors, commenced a review of a wide range of alternatives to enhance shareholder value," a press release out Tuesday said.

"The Board undertook a comprehensive review process, including discussions with third parties regarding a potential sale of the company. GameStop's Board has now terminated efforts to pursue a sale of the company due to the lack of available financing on terms that would be commercially acceptable to a prospective acquiror."

The board also said it is continuing its search for a full-time CEO. Shane Kim, was appointed to the role of interim CEO in May. He has been on the company's board of directors since July 2011.

GameStop shares were down 11%, this year including Tuesday's losses.

The video-game retailer is set to report its fourth-quarter results on March 27.

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