GameStop Looks to Raise $325 Million in IPO
By Staff -- Publishers Weekly, 9/3/2001
Barnes & Noble has filed a registration statement with the Securities and Exchange Commission in preparation for an initial public offering for the retailer's GameStop video game subsidiary.
According to the prospectus, GameStop plans to raise approximately $325 million through the offering, which is scheduled to be made in October or November. The bulk of the proceeds, about $250 million, will be used to repay some of the debt owed to B&N, with the remainder to be used for working capital and general corporate purposes. B&N has loaned GameStop about $392 million to finance its operations. B&N acquired GameStop, then known as Babbage's, in late 1999 from B&N chairman Len Riggio. After the offering is completed, B&N will continue to hold a majority stake in the video game company.
GameStop has 990 stores and for the first six months of the year had revenues of $408.1 million and a net loss of $12 million.
