GameStop Stock collapses after the abandonment of a company's sale project

The stock price of GameStop took a huge blow on Tuesday when the mbadive video game retailer announced that it had abandoned its proposed sale of the company.

The seller of physical video games and other related entertainment products would be in talks with other companies about a possible purchase of GameStop. This information would later be confirmed when GameStop announced "exploratory discussions" about the future of the company and a possible deal with a third party.

These discussions appear to be over after GameStop announced Tuesday that it was no longer pursuing its plans to sell the company. In turn, stock prices for GameStop have gone down straight, with CBS News reporting that retailer stock prices fell by 25% on Tuesday morning. As the day progresses, the numbers will show that the value has dropped even more to the lowest point in almost 15 years.

When GameStop announced for the first time that it was ending these exploratory discussions with other companies, it invoked the lack of acceptable conditions to justify its decision.

"The board has embarked on a comprehensive review process, including discussions with third parties regarding a potential sale of the company," GameStop said in its statement. "GameStop's board of directors has now halted its efforts to sell the company due to lack of available financing on terms that would be commercially acceptable to a future purchaser."

A retailer known for its physical games, the rise of digital games and online shopping has often been cited as one of the main factors in reducing physical sales. In the past, GameStop has expanded its catalog to include more collectibles related to video games and movies, as well as a more recent decision to start selling comics. GameStop rationalized its decision to start selling comics by describing the product as a "natural adjacency" to the rest of its products.

"We define consumer products as toys and collectibles," GameStop said in an interview with io9. "The decision to start selling comics in US stores GameStop and Think Geek in the United States is explained by the fact that it is for us a very natural adjacency. We have this collection fan in our environment. "