Kotaku UK has learned that, at the beginning of 2017, KKR was in talks to invest £250 million in an equity fund called the KKR GAMESTOP.
The deal was set to be completed in 2018 and it was not clear when that would happen, but it is known that the fund would invest in gaming-related businesses.KKR GAMSTORE would then buy the stock of an entity called GAMESTORE, which was founded in 2012.
In 2014, GAMESTORES parent company GameStop announced that the company was going to be spun off and that the two entities would be sold to KKR.
Since that time, GAME STORE has been a separate entity and GAME STORES investment has been invested in the game businesses of GAME STOMP, GAME PLAY, and GAME PLAY INC.
GameStop has been working with KKR for the past two years to complete the spin-off of GAMESTOP, with the company paying KKR up to 10% of the total gross profit for each new business in its portfolio.
In a letter dated May 5, 2017, GAMEPLAY’s board said it had been working for the last four months with KKRA to develop a strategic plan.
The letter also stated that GAMESTORY would be spun-off from GAMESTO and KKR would retain a 10% stake in GAMESTOMP and GAMESTYPE.
In addition, GAMEStORY would receive the right to enter into additional sales, including in-game purchases, in the form of in-store promotions.KKN also owns a significant share of Gamestop, which is based in the US and operates over 100 stores.
According to a report in the Wall Street Journal, KKN invested $500 million in Gamestops operations in 2015, including a $100 million investment in the company’s retail store and a $300 million investment to acquire online game platforms like Walmart and Amazon.
The company’s interest in GAME STORES appears to have been sparked by a report from TechCrunch last October that stated that KKN was looking to buy Gamestoppers for $1 billion, and that Gamesto would be the new gaming platform for the retailer.
The Gamestomps deal would mark the first time a gaming company has been sold off in a transaction between two investors.
The initial sale price was reportedly $4 billion.
In a statement, a spokesperson for KKR said: “KKR invests in many companies that make valuable contributions to the economy, and this investment in GAMEstore represents a major milestone for our businesses.
In line with our investment philosophy, KKKR will continue to operate Gamestore and Gameststore as a separate company, but will work with them to help accelerate their transformation and the creation of a new and more efficient business.”