GameStop Corp. (NYSE:GME) Q3 2018 Earnings Conference Call Transcript
Nov 29, 2018 • 05:00 pm ET
Thank you and welcome to GameStop's Third Quarter Fiscal 2018 Earnings Conference Call.
(Forward-Looking Cautionary Statements)
Now I'd like to turn the call over to the Company's Interim CEO, Shane Kim. Please go ahead, sir.
Thank you everyone for joining us this afternoon. Before we discuss our Q3 results, I want to take some time to share a few thoughts on our holiday business and several initiatives that we're working on and then I'll turn it over to Rob for more detailed review of the quarter and outlook for the remainder of the year. Following Rob's comments, we will be available to answer any questions you may have.
So first, as we discussed in September, our Board of Directors has undertaken a broad range review of strategic and financial alternatives to enhance shareholder value and best position GameStop for success. This thorough and comprehensive process remains ongoing. While we understand the high level of interest in announcing a conclusion to that process, we are focused on ensuring the best possible outcome for our Company, our shareholders, our associates and our other stakeholders.
We feel good about the options available to us and will continue to be deliberate in choosing the best path forward. As such and as I've said previously, we will provide you with a further update upon completion of the Board's review. As a part of the ongoing review, we took an important step last week in signing a definitive agreement to divest our Spring Mobile business and its roughly 1,300 AT&T wireless stores to Prime Communications, the largest privately held AT&T authorized retailer in the United States.
This transaction, which attractively values the Spring Mobile business as $700 million and is expected to close in January, will generate significant cash proceeds and equally importantly, will enable us to increase our focus on serving our customers' entertainment needs across video games and collectibles. We are excited about this transaction and view it to be an enabling one for GameStop.
While we are still evaluating the specific use of the proceeds as part of the Board's ongoing strategic review, we expect the transaction to facilitate investment in our core businesses to drive growth and transform GameStop for the future, repayment of debt, return of capital to shareholders or most likely some combination of these opportunities.
Second, with respect to the Board's search for a permanent CEO, that process also remains ongoing. With the help of a leading executive search firm, we are having productive conversations with promising candidates and we are determined to find the best strategic leader for the Company. However, as I discussed on our last call, we are unlikely to name a new CEO until the Board's review process has concluded. As I also said in September, I'm committed to remaining in the Interim CEO role until we select the very best person to lead GameStop on a permanent basis.
Now, moving onto our core video game entertainment business. As you know, we are the market share