GameStop Gains on Takeover Rumors
Stock quotes in this article:GME
(GameStop article updated with analyst commentary.)
NEW YORK (TheStreet) -- GameStop(GME) is spiking on rumors that it may be acquired. The video game retailer is climbing 5.6% to $19.31 in afternoon trading as investors mull the probability of it being taken over by a private equity group. "The company generates strong free cash flow and is not getting respect as a public company," Sterne, Agee & Leach analyst Arvind Bhatia says. Thus, a takeover by a private equity firm, according to Bhatia, would make sense. In the past there has been speculation that GameStop would be subject to a strategic takeover by a company like Best Buy(BBY). But Bhatia does not think this chatter will resurface. GameStop declined to comment on the rumors. This comes ahead of GameStop's fourth-quarter earnings report, which is due out on March 18. Industry video game sales, compiled by market research firm NPD, will be released after-market today. -- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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