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GameStop surges 15% after company says it will sell Spring Mobile division for $700 million

GameStop announced Wednesday it agreed to sell its Spring Mobile business for $700 million. The stock spiked 15 percent on the news.

Prime Communications, L.P. will buy Spring Mobile, which owns and operates 1,289 AT&T wireless stores, according to a press release announcing the news. The deal is expected to close in the fourth quarter of fiscal 2018, according to the press release.

The deal is part of a larger review of "a wide range of strategic and financial alternatives to enhance shareholder value," according to the release. As part of the review, GameStop's board of directors decided to sell the Spring Mobile business since it would generate immediate cash and allow the company to focus on its entertainment and collectibles business.

This story is developing. Please check back for updates.



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