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GameStop sells its AT & T stores for $ 700 million to Prime Communications, an authorized distributor of AT & T stores based in Sugar Land-Texas.
The deal is expected to be finalized by the end of the year and end a multi – year relationship between Grapevine – based GameStop and Dallas – based AT & T.
GameStop said it would use the funds to pay debts, buy back shares and invest in its core business of video games and collectibles. he is also the owner of the ThinkGeek brand. The video game retailer said in June that it was considering various options, including the sale of the company, and that these efforts will continue, said Dan DeMatteo, executive chairman of GameStop.
The sale will allow GameStop "to improve our performance by putting more emphasis on the video game industry and the burgeoning space of collectibles," said DeMatteo in a statement. Press release.
The GameStop division, called Spring Mobile, has 1,289 AT & T wireless stores. The stores were part of GameStop's strategy of leveraging its real estate expertise and diversifying from its core video game business. GameStop has grown its business, primarily through acquisitions, to become the largest operator of AT & T stores.
The sale to Prime Communications does not include Simply Mac stores, said Joey Mooring, GameStop spokesman. Simply Mac is a chain of authorized Apple retailers located primarily in small and suburban markets.
Prime Communications began operations in 1999 and has 600 AT & T stores in 22 US states, according to its website. It has several stores in the Dallas-Fort Worth area.
GameStop had a difficult year starting with the death in March of long-time CEO Paul Raines. Michael Mauler, another long-time leader promoted to succeed Raines, resigned in May for "personal reasons". He had been General Manager since February, when two other long-time leaders were fired.
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