GameStop divulges two-for-one stock split and buyback plans

In an effort to make their stocks more attractive to investors, US retailer GameStop announced a two-for-one stock split. What happens in this scenario is, say for example, you have 100 shares of GameStop having a US$ 4 value per share, the total value is US$ 400. With the two-for-one stock split, you will now have 200 shares of GameStop with a value of $ 2 each, still equivalent to your original value.

Although there’ll be no change in value and income, the “share pie” is sliced into smaller pieces which means there’ll be more shareholders for the company.

This is the first of its kind since 2002 for GameStop. The company will now have 152 million commonshares and the split will take place on February 20  while the share distribution is set for March 16. According to its CEO, R. Richard Fontaine, this will make the company’s shares more attractive to potential investors. He continued by saying:

This stock split also reinforces the confidence that the board and I have in the GameStop buy, sell, trade strategy and the future of video game growth worldwide.

Aside from the announced stock split, they also announced the authorization of US$ 150 million for the buyback of senior notes. As to when the buyback will happen and how much they would be purchasing, these would all depend on a range of factors such as market conditions.

In an effort to make their stocks more attractive to investors, US retailer GameStop announced a two-for-one stock split. What happens in this scenario is, say for example, you have 100 shares of GameStop having a US$ 4 value per share, the total value is US$ 400. With the two-for-one stock split, you will now have 200 shares of GameStop with a value of $ 2 each, still equivalent to your original value.

Although there’ll be no change in value and income, the “share pie” is sliced into smaller pieces which means there’ll be more shareholders for the company.

This is the first of its kind since 2002 for GameStop. The company will now have 152 million commonshares and the split will take place on February 20  while the share distribution is set for March 16. According to its CEO, R. Richard Fontaine, this will make the company’s shares more attractive to potential investors. He continued by saying:

This stock split also reinforces the confidence that the board and I have in the GameStop buy, sell, trade strategy and the future of video game growth worldwide.

Aside from the announced stock split, they also announced the authorization of US$ 150 million for the buyback of senior notes. As to when the buyback will happen and how much they would be purchasing, these would all depend on a range of factors such as market conditions.