Grapevine-based company GameStop Corp. announced the company has agreed to sell its subsidiary company Spring Mobile to Prime Communications for $700 million, according to a Nov. 21 news release from GameStop. Spring Mobile owns and operates 1,289 AT&T wireless stores.
The decision was a result of a comprehensive review of GameStop’s strategic plans by its board of directors, according to the news release. The sale will generate immediate cash proceeds, which may be used to reduce outstanding debt, repurchase company shares, and reinvest in the development of video games and collectibles.
“This transaction enables GameStop to enhance our performance with an increased focus on the video game industry and the rapidly growing collectibles space,” said Dan DeMatteo, executive chairman of GameStop’s board of directors, in the news release. “These are areas where we have considerable experience and where we are well-positioned to capitalize on our competitive position.”