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GameStop: Just How Likely Is a Buyout?

Investors in GameStop, who have seen the company’s shares underperform the S&P 500 steadily over the last 5 years—including a 30% drop in 2018—would probably welcome a sale at this point. The possibility of a leveraged buyout might make mathematical sense, Loop Capital investors wrote Tuesday, but the prospect of one is still “questionable”—even as a more strategic takeout is even less likely. The problems facing the Barron’s Next 50 company are substantial.