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GameStop stock on the rise thanks to $300 million buyback

The video game retailer also plans to pay a dividend and retire 2019 notes
GameStop storefront
A review of strategic alternatives is still ongoing, the Grapevine, Texas-based retailer said

GameStop Corp (NYSE:GME) has approved a $300 million buyback, pushing its share price upward Tuesday.

The video game retailer’s board of directors also announced it would pay a quarterly cash dividend and retire $350 million in 2019 notes.

The move was a power-up for the Grapevine, Texas-based company’s share price, which rose 2.3% to $11.83 in midday trading.

READ: GameStop acquisition may be too pricey for private equity firms, says Wedbush analyst

“We are pleased to announce continuing progress on our strategic and financial review process," said Dan DeMatteo, GameStop’s executive chairman, in a statement: "We believe these actions better optimize our capital structure and demonstrate our continued commitment to delivering value to our shareholders.”

The $300 buyback replaces a prior repurchase authorization which had $170 million remaining, while the cash dividend is worth $0.38 per common share.

In January, GameStop stock took a 27.2% hit after the company ended its search for a buyer, per a report from The Washington Post. The decision to retire the unsecured 2019 notes is part of an ongoing review of strategic and financial alternatives, the company said.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

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