Investing.com - Investors pushed up video game stocks midday following a report that a takeover deal could be coming soon for retailer GameStop (NYSE:GME).
GameStop jumped about 13%. The Wall Street Journal reported that the company is seeking strategic alternatives and the several private equity firms are in the hunt.
Jefferies is saying the stock could be worth $17 to $25 per share in a buyout deal, Briefing.com reported.
GameStop has been out of favor for a while with investors for its brick-and-mortar retail model as more gamers download games and updates directly.
Shares are down about 20% in the last 12 months.
Today’s spike in GameStop lifted other names in the sector, with Electronic Arts (NASDAQ:EA) jumping 6.75%, Activision Blizzard (NASDAQ:ATVI) rising 3.5% and Take-Two Interactive (NASDAQ:TTWO) climbing 2.5%.