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GameStop shares rise on buyback announcement

The video game retailer is launching what’s known as a modified Dutch auction, which allows shareholders to indicate how many shares and at what price they want to sell
GameStop sign
The move is part of the Grapevine, Texas company’s $300 million share repurchase program announced on April 2

GameStop Corp (NYSE:GME) is buying back 12 million shares of stock, the company announced Wednesday.

The video game retailer is launching what’s known as a modified Dutch auction, which allows shareholders to indicate how many shares and at what price they want to sell. GameStop will purchase shares between $5.20 and $6.

That compares to a Tuesday close of $5.02. On Monday, shares rose 8.4% to $5.44.

READ: GameStop's stock swoons as 1Q results show rapidly declining console sales

The move is part of the Grapevine, Texas company’s $300 million share repurchase program announced on April 2.

“While improving our operations and capturing efficiencies in our business to drive returns for our shareholders continues to be the top priority for the new leadership team, we view the purchase of our shares to be financially compelling at this time,” George Sherman. “We are committed to leveraging the core strengths of our business, implementing longer-term growth initiatives and continuing our disciplined approach to capital allocation.”

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

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