Is GameStop (GME) Now a Private Equity Takeover Target?

GameStop Corp. (NYSE: GME) is moving higher today on unsubstantiated private equity takeover speculation. Shares are up 5.8% on volume that is already above the norm.

Shares of GME have been beaten down as the video game industry transitions to digital, killing GameStop's retail business. The company has continuously had to lower profit guidance.

Now that private equity is back in the M&A game, GameStop could be seen as a fine takeover target due to its cash flow. Despite the downturn, analysts at Broadpoint AmTech think GME will be able to generate approximately $500 million annually through 2016.

You May Also Be Interested In

• US Pries Into Over 100 Trader, Banker Phones In Texting Probe - Bloomberg
• Broadcom (AVGO) in Talks to Acquire VMware (VMW) - WSJ
• Surf Air Mobility to Go Public Vie Merger with Tuscan Holdings Corp. II (THCA) in $1.42B Deal