GameStop To Exit Spanish Market

(RTTNews) - Multi-channel videogame retailer GameStop Corp. (GME) said Monday that it plans to exit the Spanish market through the sale of certain retail locations to UK-based specialist video games retailer, GAME Digital Plc (GMD.L) and closing its remaining stores. Financial terms of the deal were not disclosed.

Under the terms of this proposed deal, GameStop will transfer ownership of a portfolio of its stores located in Spain to GAME Digital, and close the remaining retail sites in 2014. The proposed deal requires the Spanish Competition Authority's approval, which is expected to be completed in October.

GameStop noted that GAME Digital already has a strong consumer presence in Spain, in addition to its retail operations in the UK. In the coming months, GameStop will work closely with GAME Digital to ensure a smooth transition and continued support for all of GameStop's customers in Spain.

Mike Mauler, executive vice president of GameStop International said, "The strategic decision to exit the Spanish market was made after a careful review of the market's financial performance and future opportunities, which ultimately indicated the Company would be better served by curtailing its operations in Spain and focusing its resources in other countries where GameStop has significant market share. GameStop expects to maintain and expand its presence in the other European countries in which it currently operates."

GME is trading at $43.57, down $0.04 or 0.09 percent on a volume of 235,172 shares.