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GameStop can issue shares at the higher price and use the cash to revitalise their business. Note I'm not familiar with the company so I can't assess whether th

• xnyan 6y ago
  There is so much going against them it's hard to see how they can make it work. Gamestop is a mall/strip mall operation which already means they are suffering from the massive over buildout of retail that ran wild until the crash of '08. They have a huge shopping mall presence, which means even for retail they are suffering more than most due to the cratering value of mall space in the US. A large portion of their profit came from buying used game discs and reselling at a healthy markup. Digital distribution was already hurting that in a major way and COVID is only accelerating the decline of physical media. Their plan has been the same as several other desperate mall-based stores like barnes and noble: keep the core product to draw people in, but pack the shelves with cheap high-margin "lifestyle" items like t-shirts and toys. I predict in 5 years they will be a corpse that's been picked clean by venture capital, existing as nothing more than a brand that can be slapped on some online game store.