Shareholders approve EB/GameStop merger

GameStop and Electronics Boutique have merged to form the largest games retailer in North America after shareholders approved the deal last week.

The new company, which operates under the name of GameStop Corp., will control around 25 per cent of the gaming market. It will offer serious competition for retail giants such as Wal-Mart and Best Buy, particularly since neither store sells preowned games - a significant profit generator for GameStop.

The merger, which was first announced back in April, will see GameStop owning more than 3200 stores in the US. Annual revenue is forecast at around USD 3.8 billion.

Analysts have also predicted that the company will now look at ways of expanding into Europe - Electronics Boutique recently acquired Spanish retailer Jump and is thought to be looking at other means of securing a foothold in the region.