GameStop Corporation, the biggest US video games retailer, yesterday purchased a majority stake in the Irish video games retailer, Gamesworld Group.
The firm paid $3.1 million (€2.8 million) to acquire a controlling stake in the Gamesworld Group, which has a network of 11 shops and a distribution business in the Republic.
GameStop Corporation said it would expand its Gamesworld business aggressively in the Republic, which would create up to 100 new jobs at its video games outlets throughout the State.
The founding partners of the Gamesworld Group, Mr Kevin Neary, Mr Michael Finucane and Mr Paul Hennessy, will retain their positions within the company as managing director, commercial director and financial director, respectively.
Mr Finucane said the founders also retained shares in the firm, but would not specify the exact stake that GameStop had bought.
Gamesworld Group is one of the biggest video games retailers in the Republic and reported €15 million turnover in the 12 months to the end of April 2003, said Mr Finucane. The retailing chain was founded nine years ago with about £9,500 raised from a bank overdraft, he added.
GameStop, which has a network of almost 1,300 shops in the US, this week reported sales of $305 million in the second quarter, compared with $274.3 million in the prior year quarter.
It sells new and used video game hardware, video game software and accessories, as well as PC entertainment software and related accessories. It has been growing quickly in the US over the past few years on the back of strong sales of Sony Playstation and Microsoft Xbox games.
