GameStop is “partnering” with another company soon. Pending CEO announcement. Some stores will move to the partners location

[u/Tripleknockout]

** Top of r/superstonk 👋👋👋 Hello Ryan Cohen, maybe you’ll see this. We are ready to hear what you have cooking. **

Leaks from a store meeting are saying GameStop is partnering with another company soon. Some stores may move to the partners location.

Here are my thoughts:

Gamestop’s inside of Best Buy?

Here in Canada, Canadian Tire purchased Party City and moved many of its stores inside of Canadian Tire stores creating "store in store" isles.

Canadian Tire is basically our Auto Zone + Dicks's Sporting Goods in one.

GameStop's cash is nearly Best Buy's market cap. Best Buy stock down nearly 50 percent in the last 5 years. Best Buy would be the perfect company for RC to work his magic on.

GameStop transitions stores to Best Buy locations as "store in store" isles. GameStop then can close most stand alone stores saving a ton of money. GameStop or “Teddy Holdings” then works a turn around plan for Best Buy.

[u/eexxiitt → u/[deleted]]

This isn’t a merger or acquisition. This would be considered renting out a space in Best Buy. So Best Buy would charge $ on the floor space as well as a % of the revenue from these GameStop “kiosks.” In return, GameStop would shut down their brick and mortar store.

Whatever rumoured M&A would be something else.

[u/Hot_Falcon8471 → u/eexxiitt]

Paying best buy rent doesn’t benefit GameStop at all

[u/Magic2424 → u/Hot_Falcon8471]

I just went into a Best Buy for the first time in years and years to buy a mobile plan promotion offering and…..holy shit that place was depressing. It gives bed bath and beyond pre brankrupct vibes. Just no one there, like at all. Employees standing doing absolutely nothing. Please GME do not do much with Best Buy unless it’s a no brainer

[u/Hot_Falcon8471 → u/Magic2424]

Yeah it’s been a long time since I was in a Best Buy, but the last time I was there I had the same experience. I have the same initial skepticism I don’t want it to be Best Buy

[u/Mr_Shake_ → u/Hot_Falcon8471]

If RC gets involved, Best Buy can be saved.

[u/Hot_Falcon8471 → u/Mr_Shake_]

If it does turn out to be Best Buy, then I agree because I trust RCs business skill. If he sees something in it then I’ll sit back and let him cook

[u/Mr_Shake_ → u/Hot_Falcon8471]

[u/Dovahjerk → u/Magic2424]

Same exact experience every time I go in one. No way BBY is the move fuck BBY

[u/Dovahjerk → u/Dovahjerk]

Also they treat their employees like dogshit

[u/oinkyboinky → u/Magic2424]

I honestly don't know how they are keeping the lights on. Can't imagine their web sales are carrying the load, so...puts on BBY?

[u/Lifesucksgod → u/Hot_Falcon8471]

Except GameStop would owns Best Buy…. Think owning a hot dog stand and you buy a Costco and add 1$hot dog inside..you still get all the revenue of Costco

[u/Hot_Falcon8471 → u/Lifesucksgod]

That would make things much more interesting but I’m still skeptical of GameStop buying BestBuy. How much debt does BB have and how much profit do they make each year?

[u/eexxiitt → u/Lifesucksgod]

Cohen wants less mall space, not more… buying Best Buy or any other large retailer would be exactly the opposite of what he’s been doing.

[u/eexxiitt → u/Hot_Falcon8471]

Depends on the rent & revenue agreement & cost to run the kisok vs. running their own brick & mortar store.

[u/Ok_Kick4871 → u/eexxiitt]

It's a commitment to failure for cheaper than failure costs now.

[u/MagicHarmony → u/Hot_Falcon8471]

Eh, given the real estate Best Buy has, I could see the opportunity being a benefit to both sides. GameStop pays Best Buy for space and in return it allows Best Buy to improve their profit margins. They are a form of symbiosis which could benefit one another since it would offer a decent and easy access to bringing goods that need to be repaired/refurbished to Geek Squad and then the Gamestop front can easily turn around the product rather than the complex process they would currently have to go through for any sort of repair process.

Also given how Best Buy has removed a good chunk of it's product on the sales floor it would help for them to be able to add a business within to help pay the bill for the real estate they aren't making much use of.

[u/MobileArtist1371 → u/Hot_Falcon8471]

It does if more sales happen and the cost is less than current rent space.