GameStop's stock soars to extend bounce off 13-year low after WSJ report of coming buyout deal
Shares of GameStop Corp. rocketed 14% in active midday trade Friday, enough to pace the retail sector's gainers, after the Wall Street Journal reported a buyout deal could be announced next month. Trading volume ballooned to 6.2 million shares, compared with the full-day average of about 3.6 million shares. The stock has now run up 27% since it closed Dec. 24 at $11.67, which was the lowest close for the interactive game and consumer electronics retailer's stock since April 2005. In a report out late Thursday, the WSJ report said, citing a person familiar with the matter, that private-equity firms Sycamore Partners and Apollo Global Management have bid for GameStop. The company said last year that it was reviewing strategic alternatives. The stock was still down 19% over the past 12 months, while the SPDR S&P Retail ETF has slipped 7.6% and the S&P 500 has lost 7.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.