GameStop sells phone business for $700M to focus on video games

In effort to put a larger emphasis on video games, GameStop has made a deal to sell its 1,289 AT&T wireless stores.

The video game retailer will sell its Spring Mobile business to Prime Communications, the largest privately held AT&T authorized retailer in the United States. Prime currently operates 680 locations. The $700 million deal is expected to close before the end of the year, according to a company press release.

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The sale is part of the GameStop Board of Directors’ plan to enhance shareholder value. The proceeds will be used to reduce the company’s outstanding debt, fund share repurchases, reinvest in core video game and collectibles businesses to drive growth or some combination of the options.

“This transaction enables GameStop to enhance our performance with an increased focus on the video game industry and the rapidly-growing collectibles space. These are areas where we have considerable experience and where we are well positioned to capitalize on our competitive position,” said Dan DeMatteo, executive chairman of GameStop’s board of directors.

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