GameStop ($GME) shares rose after the company amended its planned $1.4 billion convertible note exchange, replacing part of the stock consideration with approximately $358.4 million in cash and fixing the number of shares to be issued at roughly 55.5 million. GameStop also released preliminary second-quarter results showing higher profit despite lower sales.
- About 73% of the note exchange consideration will be paid with 55.5 million GameStop shares, while approximately 27% will be paid in cash.
- The exchange will retire approximately $1.4 billion of zero-coupon convertible notes, with about $2.8 billion remaining outstanding afterward.
- GameStop expects Q2 net income of $290 million to $310 million, up from $168.6 million a year earlier.
- Q2 sales are expected at $780 million to $800 million, down from $972.2 million a year earlier.
- Results include approximately $238 million in net gains tied to eBay ($EBAY), partially offset by a roughly $75 million digital-asset loss.
Relevant Companies
- GameStop ($GME) - The amended exchange reduces the stock consideration and uses $358.4 million of cash on hand.
- eBay ($EBAY) - GameStop held 43.4 million eBay shares valued at approximately $4.95 billion as of Aug. 1.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
