![]() ![]() Those stores were expected to generate about $1 million apiece.īy 2016, GameStop owned and operated just shy of 1,500 mobile-phone stores under the Spring Mobile name. And when they didn't generate that kind of money, they quickly became an expensive liability. ![]() "It turned into a complete disaster," Pachter said. "These stores were going to do a million apiece. So with 1,500 stores you're looking for $1.5 billion in revenue and double-digit margins. So $150, $200 million profit, and I think they got to $80. They were just never even close."īefore the acquisitions, GameStop had cash in the bank and zero debt. By 2018, when Spring Mobile was sold for $700 million, the company was swimming in debt. "I estimate they spent about $1.5 billion buying all these stores - $700 million in cash and $800 million in debt - and ended up selling for $700 million," Pachter said. The company "went from no debt and generating about $400 million in cash, to $800 million in debt and generating $300 million in cash," he said. In 2020, you can still buy music on compact discs and movies on Blu-ray discs. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |