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GameStop Drops Most Since 2002 After Failing to Sell Itself

01/29/2019

Summary

The brick-and-mortar video game retailer, GameStop, has given up the hunt for a buyer after months of struggles to settle on an agreeable price. After announcing this, the company's stock has dropped 26% and the company is still searching for a permanent chief executive officer to save them after the previous CEO stepped down after just a few months. One analyst suggests that GameStop will need to be more aggressive in closing stores and investing in new systems.

Key Points

  • GameStop's stocks plummeted after they announced they are no longer looking to sell the company
  • There is no permanent CEO leading the company
  • Competition seems to be intensifying with the news that Apple and others plan to launch video game streaming services

Discussion Questions

  • What could GameStop have done in the past to avoid their current situation? 
  • What suggestions do you have for the company now that could possibly put them on the path to recovery?

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