Gamestop shares plunge after it pulls plug on finding a buyer

By Sarah Min

/ MoneyWatch

Gamestop, the nation's largest independent seller of video games, is ending efforts to find a buyer. The company's stock price tumbled 25 percent in early-morning trading, with investors seemingly questioning the brick-and-mortar retailer's prospects as more consumers download games online.

Gamestop began considering strategic alternatives, including a possible deal to sell the company, last June. But it stopped pursuing a sale "due to the lack of available financing on terms that would be commercially acceptable to a prospective acquiror," the company announced on Tuesday.

Interim Gamestop CEO Shane Kim cited the company's problems in a November earnings call, noting that "we continue to face challenges in our traditional physical video game retail business model."

How brick-and-mortar retailers are competing with online giants

Gamestop will also continue searching for a permanent CEO, after former chief executive Michael Mauler stepped down last May after only three months in the position.

With no buyer in sight, the company must now get its financial house in order, Wedbush Securities analyst Michael Pachter said in a research note. "We expect GameStop to aggressively cut costs in 2019 and beyond, to pay its debt balance down to zero and to increase its share repurchase program."

First published on January 29, 2019

© 2019 CBS Interactive Inc.. All Rights Reserved.

Polar vortex's possible boost from global warming

Some scientists think the natural phenomenon bringing brutally cold weather to much of the nation has an unlikely helper

updated 4M ago

Gamestop shares plunge after it pulls plug on finding a buyer

Like many other brick-and-mortar retailers, video game merchant has been hurt by surge in ecommerce

updated 14M ago

Houston police chief giving update on wounded officers

Five Houston police officers injured in gunbattle during attempt to serve search warrant

updated 23M ago

Video shows 3-year-old girl falling from 16-foot border wall

The girl was traveling with a group of people from Guatemala, CBP said

updated 44M ago

Roger Stone pleads not guilty—live updates

The president's longtime associate, through his attorney, entered a not guilty plea

updated 4M ago

Roger Stone pleads not guilty—live updates

The president's longtime associate, through his attorney, entered a not guilty plea

updated 4M ago

Intelligence chiefs provide updates on worldwide threats — live updates

FBI's Chris Wray and DNI Dan Coats are testifying before the Senate Intelligence Committee

updated 49M ago

Jeff Flake: "I will not be a candidate" in 2020

The former Republican senator who emerged as an outspoken Trump critic is joining CBS News as a contributor

updated 21M ago

Howard Schultz on a 2020 run: "I think I can beat the system"

Democrats and other critics of President Trump are urging the former Starbucks chairman and CEO to reconsider his potential plans for 2020

2H ago

"5,000 troops to Colombia"? Nation responds to Bolton's note

Foreign Minister Carlos Holmes said Colombia does not know the "importance and reason" for Bolton's note

3H ago

Video shows 3-year-old girl falling from 16-foot border wall

The girl was traveling with a group of people from Guatemala, CBP said

updated 44M ago

Deaths mount as arrests sought over Brazil dam collapse

Police issue 5 warrants, reportedly for employees of mining giant Vale which owns the dam that failed, killing at least 65 people

2H ago

"5,000 troops to Colombia"? Nation responds to Bolton's note

Foreign Minister Carlos Holmes said Colombia does not know the "importance and reason" for Bolton's note

3H ago

Deaths mount as U.S. ups pressure on Venezuela's Maduro

United Nations says 40 people have been killed and hundreds more arrested as U.S. tightens financial noose on embattled president

3H ago

Pakistani court ends Christian woman's legal nightmare

Aasia Bibi had been on death row for insulting Islam, and even after acquittal she was force to live in hiding; now she is free to leave the country

5H ago

Free "Black Panther" screenings for Black History Month

Disney said the film will be shown at 250 participating AMC locations nationwide the first week in February

updated 59M ago

"This Is Us" star sells Girl Scout cookies at SAG Awards

The 11-year-old earned a Screen Actors Guild Award – and a badge, too

17H ago

How to watch the 2019 Super Bowl

The New England Patriots will face the Los Angeles Rams in Atlanta in Super Bowl LIII — here's everything you need to know

8H ago

Bradley Cooper and Lady Gaga sing "Shallow" in surprise performance

"So, I'm gonna be a little chance-y … Yo Bradley, you wanna come up and do this one?" Gaga asked during her "Enigma" performance Saturday night at Park MGM resort

Jan 28

XXXTentacion's son born 7 months after rapper's death in Florida

Rapper's girlfriend Jenesis Sanchez gave birth Saturday to baby boy Gekyume Onfroy

Jan 27

Polar vortex's possible boost from global warming

Some scientists think the natural phenomenon bringing brutally cold weather to much of the nation has an unlikely helper

updated 4M ago

Apple FaceTime bug turns your iPhone into hot mic

Apple spokesperson said, "We're aware of this issue and we have identified a fix that will be released in a software update later this week"

8H ago

Apple, Facebook and other tech giants face critical week

High-tech industry in the spotlight this week as investors look for signs that growth is holding up

20H ago

Meet the man behind a third of what's on Wikipedia

Steven Pruitt has made nearly 3 million edits on Wikipedia and written 35,000 original articles — all for free

Jan 27

Amazon facial technology shows bias, researchers say

Facial-detection technology that Amazon markets to law enforcement often misidentifies women, particularly those with darker skin, according to new research

Jan 25

Growing measles outbreak in Washington spreading fear among parents

Washington state has declared a public health emergency, with more than 50 places confirmed as a "public exposure location"

3H ago

Lowering blood pressure could cut risk of memory issues, study finds

The study looked at the effect of more intensive blood pressure control and risk of developing mild cognitive impairment

16H ago

Possible listeria contamination sparks fruit recall

Thousands of pieces of fruit recalled in 18 states because they may be contaminated with harmful bacteria listeria

21H ago

Vaping among teens, kids "threatens five decades" of gains, experts say

American Academy of Pediatrics says 20% of high school students, 5% of middle school students use e-cigarettes, call for more federal regulation

Jan 28

Their twins' medical costs top $1 million. Can GoFundMe help?

Some 250,000 GoFundMe campaigns have been set up to raise money for people facing steep health care costs

18H ago

Gamestop shares plunge after it pulls plug on finding a buyer

Like many other brick-and-mortar retailers, video game merchant has been hurt by surge in ecommerce

updated 14M ago

40% of Americans only one missed paycheck away from poverty

Many otherwise middle-class people are "liquid-asset poor," meaning they can't withstand even a brief financial shock

updated 38M ago

Women-centric workspaces are on the rise

Many predate the #MeToo movement, but this "safe space" trend is now gaining strength nationwide

2H ago

U.S.-China trade talks could be complicated by Huawei charges

Criminal charges against the Chinese tech giant may muddy trade talks intended to defuse the trade war

2H ago

Laid off? You may not get paid for unused time off

As workers who just lost their jobs at BuzzFeed learned, whether you get paid depends on what state you live in

updated 39M ago

Houston police chief giving update on wounded officers

Five Houston police officers injured in gunbattle during attempt to serve search warrant

updated 23M ago

Cop charged in Russian roulette death appears injured in mugshot

Nathaniel Hendren is in custody three days after he was charged with involuntary manslaughter in the shooting death of Katlyn Alix

3H ago

Passenger stabs, kills pregnant Lyft driver in Tempe, Ariz.

Police arrested suspect some 133 miles away after, they say, he stole her SUV, which they think was the motive for the attack

2H ago

Will El Chapo testify in his own defense?

Defense attorneys have raised the possibility of calling "El Chapo" as a witness

19H ago

Wild road rage incident caught on camera

The man on the hood is grateful a fellow driver with a gun finally helped stop the SUV

Jan 28