GameStop sells Canadian operations to toy entrepreneur; shares down

GameStop's GME.N shares down 3% at $25.80 amid broader fall in equities on Tues after video-game retailer divests its Canadian business

Co late Mon announced French-Canadian entrepreneur Stephan Tetrault acquired its over 185 Canadian stores

The business to be renamed EB Games Canada, its name before GME rebranded it in 2021

Terms of the deal were not disclosed. Transition to occur in coming months

"This isn't just a business decision—it's about bringing something back that Canadians truly loved," said Tetrault, who will be both owner and CEO

GME's Canadian segment generated $204 mln in sales in 2024, ~5% of co's total sales of ~$3.8 bln, per a filing

Tetrault, founder of toymaker Imports Dragon and co-owner of McFarlane Toys, made an equity investment last month in Mastermind Toys

In Feb, GME disclosed it was looking to sell its operations in France and Canada

About a month later, GME said it would invest in bitcoin BTC=, mimicking the playbook of cryptocurrency hoarder Strategy MSTR.O

With move on Tues, GME shares off ~18% YTD