Mergers Stall EB Games' Income

WEST CHESTER, PA-A pending merger with GameStop Corp. and the acquisition of a Spain-based video game retailer brought down Electronics Boutique Holdings Corp.’s net income to $1.6 million during its Q2, which ended July 30. Without those two transactions, the retailer, which owns the EB Games chain of stores, would have brought in $3.5 million.

The $1.4-billion EB Games-GameStop merger will create a specialty retail giant in the video game sector, with 4,000 stores worldwide. Executives at the two companies expect the deal to close in early October.

During its Q2, the company bought a 138-store chain in Spain called Jump Ordenadores S.L.U. Electronics Boutique also entered the Switzerland market by acquiring PC-Joy AG, a nine-store electronics chain based in Zurich.