DALLAS, May 2 /PRNewswire-FirstCall/ -- Blockbuster Inc. , a leading global provider of in-home entertainment, today announced it has sold Games Station Limited ("Gamestation"), its 217 store specialty games retailer in the UK to UK-based THE GAME GROUP PLC, a leading European specialist retailer of PC and video games, for approximately $150 million in cash, subject to certain adjustments.
Blockbuster expects to use a majority of the proceeds from the sale to pay down outstanding debt. Citi served as financial advisor to Blockbuster for the transaction.
John Antioco, Blockbuster Chairman
and Chief Executive Officer, said, "GAMESTATION(R) is a terrific brand that has performed well during our ownership. While we believe Gamestation 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."
Blockbuster purchased Gamestation in October 2002 and in just over four years grew the chain, which offers an extensive range of new and pre-owned video games, from 64 stores to more than 200 locations.
Today's announcement reinforces Blockbuster's commitment to explore the divestiture of non-core assets and some of its remaining international operations. During 2006, the Company completed the divestiture of its MOVIE TRADING CO.(R) locations and Movie Brands Inc. subsidiary, exited Spain, and sold its Taiwan subsidiary, coupled with a master franchise license, to Webs-TV, the largest broadband TV operator in the Chinese market. Most recently, Blockbuster sold its U.S.-based RHINO VIDEO GAMES(R) chain to GameStop Corp. Blockbuster also recently entered into an agreement to sell its Australian subsidiary and grant the master franchise rights for the BLOCKBUSTER(R) system in Australia to Video Ezy, an Australian-based company that operates franchised video rental stores.
Zelda, Mario Galaxy, Mario Kart, Guitar Hero III, Guitar Hero: World Tour, Battalion Wars 2, Medal of Honour: Heroes 2, Mario Strikers Charged, Excite Truck, Rayman Raving Rabbids, Big Brain Academy, Metal Slug: Anthology, Wii Play, PES 2008, Endless Ocean, Super Paper Mario
DS:
Mario Kart, More Brain Training, Advance Wars: Dark Conflict, 42 All Time Classics, Project rub, Animal Crossing: Wild World, Yoshi's Island DS, Picross DS
360:
Halo 3, Mass Effect, COD 4, Ghost Recon, FIFA 09, Top Spin 3, Portal: Still Alive, Geometry Wars 2: Evolved
Game buys out Game Station
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