Blockbuster says Game Over on Game Station UK
Hopes sell-off will bust debt
Posted in IT Channel, 2nd May 2007 13:26 GMT
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Movie retail giant Blockbuster Inc has said it has sold Game Station Ltd, the UK video game arm of its business, to Game Group Plc in a $150m deal.
Dallas-based Blockbuster said it hopes proceeds from the sale will help pay off outstanding debt.
Blockbuster bought Game Station in October 2004, and the sale is the latest in a series of moves that signals its ongoing plans to cut loose non-core assets and some international operations.
Blockbuster chairman and CEO John Antioco said: "Game Station is a terrific brand that has performed well during our ownership. While we believe Game Station is positioned for ongoing success, today's announcement underscores our intent to focus on our Blockbuster-branded assets in North America in support of our goal to grow our overall share of the video rental market, both in-store and online."
Game Group shares leapt 5.2 per cent on the announcement. ®
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