GameStop to sell Spring Mobile division for $700 million

U.S. video game retailer GameStop intends to sell its Spring Mobile business to Prime Communications LP for $700 million as part of its ongoing strategic and financial review.

Spring Mobile currently owns and operates 1,289 AT&T wireless stores, and GameStop hopes that by selling the company it will be able to reinvest some cash into its core video game and collectibles business.

Proceeds from the sale might also be put towards fund share repurchases, and paying off some of the company's outstanding debt.

"This transaction enables GameStop to enhance our performance with an increased focus on the video game industry and the rapidly-growing collectibles space," explained Dan DeMatteo, executive chairman of GameStop's board of directors. 

"These are areas where we have considerable experience and where we are well positioned to capitalize on our competitive position." 

The transaction is expected to close during the fourth quarter of the fiscal year ended March 31, 2019.