Many sources are today reporting an announcement from video game retailer Gamestop, which states the company will purchase rival Electronics Boutique (EB) for a cool $1.44 billion. The announcement has caused EB shares to jump 35%, making it today's top net gainer on the Nasdaq. Gamestop shares have risen 12%.
The merger is expected to give Gamestop/EB 21-25% of the US video game retailing market, providing Wal-Mart with some serious competition. While we're EB people over here at Lunabean (primarily because the people who work at our Gamestop are rude), we're pleased as punch when any company gives Wal-Mart a run for its money.
USAToday's article