GameStop to Sell Its AT&T Wireless Stores for $700 Million

  • Video-game chain retreats from diversification strategy
  • Proceeds will repay debt, buy back stock or be reinvested
Photographer: Patrick T. Fallon/Bloomberg
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GameStop Corp., the video-game retailer, agreed to sell its AT&T wireless stores to Prime Communications LP for $700 million, exiting a business that the company once viewed as a key source of future growth.

The sale of Spring Mobile, with 1,289 stores, is expected to close by the end of January, Grapevine, Texas-based GameStop saidBloomberg Terminal Wednesday. Proceeds from the sale may be used to reduce debt, repurchase shares or be reinvested in the company’s core video-game business. The retailer continues to evaluate strategic options to boost its share price.