The stock was rising 4.15% to $12.05.
The new repurchase program will replace a previous program that had $170 million remaining.
In addition to GameStop's plans to return cash to shareholders, the company also will buy back some of its debt. It will retire its $350 million 2019 notes, due in October. The company said it is looking for ways to put excess cash to work, but in a press release said it "does not foresee making any acquisitions in the immediate future."
"We are pleased to announce continuing progress on our strategic and financial review process," said Dan DeMatteo, GameStop's executive chairman. "We believe these actions better optimize our capital structure and demonstrate our continued commitment to delivering value to our shareholders."
The board of directors also declared a quarterly cash dividend of 38 cents a share, payable on March 29.
In late January, GameStop announced it wasl no longer actively pursue a sale, which caused the stock to fall 27% over the course of a day. Since then, the stock has been hovering around $11 a share.