GameStop has this habit of buying out other game retailers. In fact, you can ask any employee of Babbage’s, Software Etc., FuncoLand or EB Games about how GameStop likes to buy other chains. GameStop is working on getting a lock on the brick and mortar video game specialty stores, and they’ve just gotten a little bit closer.
Blockbuster (NYSE: BBI, BBI.B) has accounced that it is selling its stand alone game stores to GameStop for an undisclosed amount of money. Rhino Video Games, home of the no-questions-asked seven day return policy, will be purchased by the GameStop Corporation(NYSE:GME, GME.B) as per an agreement that was reached with Blockbuster. Rhino Video Games, as a chain, is located mostly in the southeast and in areas that are desirable to GameStop.
“The integration of the Rhino group into the growing portfolio of GameStop stores will result in operating synergies while being accretive to earnings,” said R. Richard Fontaine, GameStop Chairman and CEO. “The location of most Rhino stores do not overlap existing GameStop sites, and primarily serve secondary and tertiary markets where we have been very successful. Furthermore, the Rhino business model, and a very game oriented management team, will fit seamlessly into the GameStop culture.”
The sale is supposed to go through by the end of January.