Feds OK EB-GameStop Merger

[bandersnatch]

GameInsider is reporting (http://www.gameinsider.com/comments.php?id=1058&catid=1) that the U.S Securities and Exchange Commission has their approval on the EB-GameStop merger.

As mentioned in the article, the next step is to get shareholder approval to complete the merger.



The latest press release to come out of retailer GameStop has announced that the U.S Securities and Exchange Commission has given okay to allow for the merger of EB Games and GameSpot and will not be blocking the merger.

Direct from the GameStop press release:

GameStop Corp. (NYSE:GME) (NYSE:GME.B ) and Electronics Boutique Holdings Corp. (Nasdaq:ELBO) announced today that the registration statement relating to the combination of the two companies has been declared effective by the U.S. Securities and Exchange Commission. Both companies expect to begin mailing their joint proxy statement-prospectus on or about September 7, 2005 to stockholders of record as of Tuesday, August 30, 2005.



So, does this merger benefit the customer or the stockholders?

[Twigz'N'Berries]

Stockholders. It essentially killed competition between the companies and should lower operating expenses. It will give the new company greater buying power (the whole buying in bulk concept)...which ultimately lowers their cost on an item.

But we won't see a dime of this savings. I'm willing to bet wooden nickels on that.

[amusedtoe]

Well one things certain, it's not going to benefit us the consumer. :mad:

[A-Team]

I could've sworn we argued about who it was benefiting back in April when news of the merger originally broke.

As far as approval, they'll get it. Shareholders are getting nearly a 40% premium on each of their shares and over 3 quarters of a GameStop share for every Electronics Boutique Holdings share they possessed at the time of the merger.

On an added note, this news broke yesterday afternoon.

[The Radical Cleric]

I don't shop at either store anymore. I don't need an extended warranty on a brand new game. :rolleyes: It's a shame, I like the idea of a specialty game store, but the expereince of shopping there just kept going downhill.

[TrackZero]

So, does this merger benefit the customer or the stockholders?

Can't it be both?

Kidding aside, obviously the stockholders, at least, that's their goal.

[Paltry]

I could've sworn we argued about who it was benefiting back in April when news of the merger originally broke.
On an added note, this news broke yesterday afternoon.

you are so cool a team i wanna suck your dick

[Dr.Finger]

What does this mean for malls that have both stores? Do they continue to operate as separate entities (like having a Macy's and a Bloomingdales in the same mall even though they are both owned by Federated) or do they simply close whichever store produces less. Either way we're going to be getting less for trade ins and paying more for used product.

[A-Team]

you are so cool a team i wanna suck your dick
What was that for? The news did break yesterday and we did argue about this whole ordeal back on when. Granted I was taking a jab at this bandersnatch fellow for not crediting his sources for his news (which he didn't bother doing for the GameCloud reviews or the PD0 news that he practically "stole" from the front of EvAv), but I'm sure you realized all of that already.

Oops, did I say that out loud?

[Worldcrafter]

Anyway... All I can say is, GoGamer better get ready, because I don't plan on shopping EB unless I have to. On a related note, as soon as GoGamer has the DVD version of F.E.A.R. on their site, I'm buying it.

[Hijinx]

What does this mean for malls that have both stores? Do they continue to operate as separate entities (like having a Macy's and a Bloomingdales in the same mall even though they are both owned by Federated) or do they simply close whichever store produces less. Either way we're going to be getting less for trade ins and paying more for used product.

If they are both making a profit, then nothing will change. If one isn't making a profit, then they will look at the lease and see if its cost effective to close the lease.

I am holding judgment on how this will effect the consumer. They know the game nerds are watching and waiting, so hopefully the merger will allow better deals, trades etc. Either way I'm not really happy about the merger *cough* acquisition, but to say that everything will cost more and will go downhill is absurd. Competition is fucking everywhere.

[Kelegacy]

I dont buy from them anyway. Especially now. Games at EB and Gamespot are no cheaper than anywhere else--it's hard to lower retail prices for games. If I'm going to buy a new game, I'll go elsewhere. I especially dont feel the need to go there now that the PC games section is basically gone. I might check out used stuff, but most of that is overpriced too. I remember I was shopping for GTA3 a few years back, and the used version at EB was 45 bucks and the new was 50. This was almost a year after it was out. I told the clerk to suck my ass and left empty handed. I bought the game at Best Buy not long after.

[A-Team]

I wonder what'll happen down here in Christiansburg, VA. We have an EB and a Software Etc. sitting directly across from each other in the mall. :o

[Moatman]

Definitely the stockholders. I remember talking to EB and gamestop managers about pricing years ago. If a mall only had one or the other, they'd hike up game prices 5 or 10 bucks each, since people had no other options. Soon, it will be like that everywhere and they will be able to set whatever stupid mall price they want(like $18 cd's, who buys those? so many places sell them for 10-14 elsewhere, but mall stores...oh no...)

So I think it will come down to just buying things online to get competetive prices when things are first released or waiting a few days for bestbuys and such to get the games in and pay actual msrp or less.

[Orphiuchus]

Less competition. Bigger company. Yea, that sounds bad for consumers.

[Kyle Jones]

This benefits me, as I have a seething grudge against my local EB and I am smiling watching it go down slowly and painfully.

Struggle, you bastard!

[Adewade]

Anyway... All I can say is, GoGamer better get ready, because I don't plan on shopping EB unless I have to. On a related note, as soon as GoGamer has the DVD version of F.E.A.R. on their site, I'm buying it.

Why, oh why won't they ship to Canada?

[Citizen Philip]

... I especially dont feel the need to go there now that the PC games section is basically gone. I might check out used stuff, but most of that is overpriced too. I remember I was shopping for GTA3 a few years back, and the used version at EB was 45 bucks and the new was 50. This was almost a year after it was out. I told the clerk to suck my ass and left empty handed. I bought the game at Best Buy not long after.

Funny. Yesterday i was lamenting to my girlfriend as we strolled through the mall, how I don't need to go into EB anymore since they no longer have a PC section worth a damn.

Poor Impulse Control? I heard that a guy killed everyone on a submarine with a glass knife!

[XxSATANxX]

I was the biggest EB Games fanboi in the world. Over time they carefully trained me
that they could care less about me or my money. I own over 1000 games. As my game addiction grew and I branched into the world of PS2 and XBox they continued to
show me how little they cared. At some point they went from being a specialty retailer to being those three rows of games at Wal-mart. Thanks, it's actually very tough to be a loyal customer. Now I don't have to walk by those great deals I see at
Wally world or Best Buy. Since you don't seem to need me I just go ahead and snap up those deals. (Yup I actually used to pay more for a game so I could support my favorite retailer....god I'm such a dumb ass)

As for the merger/shotgun wedding. I find it amazing that the feds just gave this one
a rather quick okie dokey. As part of my job I call on big box retail. Several of the players in the game space seemed to indicate this one was not going to make it. Well if it supports big business this current group of big thinkers in Washington DC.
give it a bigs thumbs up. The consumer yea fuck'em let'm pay 3-4-5 dollars a gallon for gas.

Seems most of you could care less where you buy games. You've been trained into something I like to call the Wal-mart syndrom. I've recently re-discovered a retailer
I think I can support for all my Gamer needs. Fry's! Not sure how long they can last but while they are here I'm going to get all my Gamer gear from them. Why? Well first of all the customer is king. Selection they got it all, mags, gear, games in stock and all priced right. Also I'm going to give Go-Gamer a try soon.

My prediction is this stock doubles in less than a year. Prices to consumers rise and selection, stock, service decline. Guess that's just good biz. Hey I'm not a commie
but it does make me little sad until dividend day then I run down to Fry's and it's all good!

[LilAbner]

Here's the deal, straight from a Best Buy employee: not much money is made by the stores on the games....maybe $5-$8 each....less if it's a "value" title. The real money is made on used games....it's actually an absolute KILLING. There's also good margin on accessores, especially the third party ones like Nyko and Mad Catz.

But when it comes to new games, the publishers get the biggest cut.

BTW, what is GoGamer, and where's the nearest one to Baltimore?

[B_Money]

So, does this merger benefit the customer or the stockholders?

Can't it be neither?
This deal doesn't benefit customers cause less competition is bad, and it doesn't help stockholders cause of increased debt load on the aquiring company. It really benefits the senior management who can point to this accomplishment and write themselves a big bonus.

[Heretic Machine]

I don't shop at either store anymore. I don't need an extended warranty on a brand new game. It's a shame, I like the idea of a specialty game store, but the expereince of shopping there just kept going downhill.

I don't get hard-to-find items there... because chances are, they will be sold out, and won't of ordered as many as they should have anyhow. But if I just want to pick up some random game (Advance Wars DS was the last one I bought there) then I'll take them over Wal-mart. Best Buy is usually preferable but I rarely go there anyhow...

[Heretic Machine]

BTW, what is GoGamer, and where's the nearest one to Baltimore?

It's an online store with cheap games... We have a banner thingy here on EA somewhere.

[dr_wily]

I go out of my way to not buy from either. They usually smell weird, never offer discounts, and push used games. (which I abhor, I would rather buy used from a fellow gamer online and save 2x as much)

I find selling used games akin to used cars in a dealership

[Kelegacy]

I go out of my way to not buy from either. They usually smell weird, never offer discounts, and push used games. (which I abhor, I would rather buy used from a fellow gamer online and save 2x as much)

I find selling used games akin to used cars in a dealership

They DO smell bad. They are so fucking small and cramped that I feel caged in when I'm in the EB stores. Also, pale, moon-faced, obese B.O. carriers seem to set up refuge there.

[Hijinx]

I remember I was shopping for GTA3 a few years back, and the used version at EB was 45 bucks and the new was 50. This was almost a year after it was out. I told the clerk to suck my ass and left empty handed. I bought the game at Best Buy not long after.

You really told that guy. He damn well had that coming since he makes all the big decisions for the entire company. Or is that just your online persona yapping?

[Kelegacy]

You really told that guy. He damn well had that coming since he makes all the big decisions for the entire company. Or is that just your online persona yapping?

It wasn't really a telling I gave him, it was more in the form of a question...a proposition. Needless to say, he accepted. Salad tossing commenced soon after.

[jim_rock]

We will see an advantage in this. You people like to be all anti big business and make up hauty-tauty terms like "walmart syndrome" or "McCulture", but you don't do shit about it, just bitch. EBGamestop makes jobs for people and fucking hooks me up with my gear, the day its supposed to come out. Ever go to "Jasons Video Game World" or some shit like that? They never have what you want, all their stuff is used, and they laugh at you if you want to preorder a hard to find console. Indie game stores traditionaly suck and smell bad. Or, they have that goddamn prick behind the counter who thinks he knows more than you, I dont like putting up with it, take me to a clean EB any day. Atleast there, when they rip me off, I get the fucking game I wanted. Plus EBGamestop trade in values are much higher than any other game store.

EB and gamestop can now supply us with videogames faster and more efficently because they are sharing distribution centers. This is where they put product so they can ship it to outlets that dont have any. NEW releases are generally shipped out by the publisher but sometimes not and thats where the distro comes into play. More distros in more varied locations means that you pansy shits will be able to get your uber rare copy of Marvel vs. Capcom 2 for dreamcast. Then youll buy it for like 55 bucks and complain that "CRAZY BURTS had it for 25 dollars before they closed". why am i so mad?