You are here: Home » International » News » Markets
Business Standard

GameStop's shares tank 12% after it plans a $1 billion stock sale

At Thursday's closing price of $191.45, the "at-the-market" sale could fetch GameStop up to $670 million

Topics
US markets | share sales | stock market

Reuters 

GameStop
The stock has gained more than 900 per cent so far this year

GameStop shares fell 12 per cent on Monday after the video game retailer said it may sell up to $1 billion worth of stock as it takes advantage of a dizzying rally in its stock on the back of a Reddit-driven retail trading frenzy.

The company said it would sell up to 3.5 million shares and use the proceeds to speed up the shift in its business model to e-commerce in an overhaul being led by top shareholder and board member Ryan Cohen.

At Thursday's closing price of $191.45, the “at-the-market” sale could fetch GameStop up to $670 million. The firm, however, is not obligated to sell shares at that value since at-the-market programs allow firms to sell stock over a prolonged period of time.

The stock has gained more than 900 per cent so far this year, giving the company a valuation of as much as $34 billion at one point as retail traders bet against Wall Street hedge funds that had shorted its shares.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, April 06 2021. 01:44 IST
RECOMMENDED FOR YOU
.