Filed Pursuant to 424(b)(3)
Registration No. 333-128960
PROSPECTUS DATED NOVEMBER 4, 2005
9,115,950 Shares
GAMESTOP CORP.
Class A Common Stock
____________________
The stockholders of GameStop Corp. listed in this prospectus under the
section entitled "Selling Stockholders" are offering and selling up to 9,115,950
shares of our Class A common stock under this prospectus. The shares of Class A
common stock being offered under this prospectus were issued by us to the
stockholders of Electronics Boutique Holdings Corp. ("EB") in connection with
our business combination with EB on October 8, 2005. Information concerning the
selling stockholders and the times and manner in which they may offer and sell
the shares of our Class A common stock under this prospectus is described under
"Selling Stockholders" and "Plan of Distribution" in this prospectus. We cannot
assure you that all or any portion of the shares of Class A common stock offered
under this prospectus will be resold.
We will not receive any of the proceeds from the sale of shares being
offered by the selling stockholders.
Our Class A common stock is traded on the New York Stock Exchange under the
symbol "GME." On November 3, 2005, the closing sale price of our Class A common
stock as reported on the New York Stock Exchange was $36.99 per share.
Our principal executive offices are located at 625 Westport Parkway,
Grapevine, Texas 76051, and our telephone number is (817) 424-2000.
No underwriting is being used in connection with this offering of Class A
common stock. The shares of Class A common stock are being offered without
underwriting discounts. The expenses of this registration will be paid by us.
Normal brokerage commissions, discounts and fees will be payable by the selling
stockholders.
Investing in our Class A common stock involves risks that are described in
the "Risk Factors" section beginning on page 4 of this prospectus.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of this prospectus. Any representation to the contrary is a
criminal offense.
The date of this prospectus is November 4, 2005.
TABLE OF CONTENTS
Page
ABOUT THIS PROSPECTUS.......................................................2
FORWARD-LOOKING STATEMENTS..................................................2
GAMESTOP CORP...............................................................3
RISK FACTORS................................................................4
USE OF PROCEEDS............................................................11
SELLING STOCKHOLDERS.......................................................12
PLAN OF DISTRIBUTION.......................................................13
DESCRIPTION OF CAPITAL STOCK...............................................14
LEGAL MATTERS..............................................................18
EXPERTS....................................................................18
WHERE YOU CAN FIND MORE INFORMATION........................................18
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE............................19
____________________
You should rely only on the information contained or incorporated by
reference in this prospectus. We have not authorized any other person to provide
you with different information. If anyone provides you with different or
inconsistent information, you should not rely on it. These securities are not
being offered for sale in any jurisdiction where the offer or sale is not
permitted. You should assume that the information appearing in this prospectus
is accurate only as of the date on the front cover of this prospectus. Our
business, financial condition, results of operations and prospects may have
changed since that date.
Information contained in our web site does not constitute part of this
prospectus.
____________________
1
ABOUT THIS PROSPECTUS
This prospectus relates to the sale by the selling stockholders of up to
9,115,950 shares of our Class A common stock. The selling stockholders may sell
the Class A common stock described in this prospectus in one or more offerings.
This prospectus provides you with a general description of the Class A common
stock the selling stockholders may offer. To the extent required, each time the
selling stockholders sell shares of our Class A common stock, a prospectus
supplement will be provided that will contain specific information about the
terms of that offering. You should read this prospectus and any accompanying
prospectus supplement together with the additional information contained under
the headings "Where You Can Find More Information" and "Incorporation of Certain
Documents By Reference."
FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated by reference contain and
refer to forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The
forward-looking statements involve a number of risks and uncertainties. A number
of factors could cause our actual results, performance, achievements or industry
results to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements. These
factors include, but are not limited to:
o our reliance on suppliers and vendors for sufficient quantities of their
products and for new product releases;
o economic conditions affecting the electronic game industry;
o the competitive environment in the electronic game industry;
o our ability to open and operate new stores;
o our ability to attract and retain qualified personnel; and
o other factors described in this prospectus, including those set forth under
the caption, " Risk Factors."
In some cases, forward-looking statements can be identified by the use of
terms such as "anticipates," "believes," "continues," "could," "estimates,"
"expects," "intends," "may," "plans," "potential," "predicts," "will," "should,"
"seeks," "pro forma" or similar expressions. These statements are only
predictions based on current expectations and assumptions and involve known and
unknown risks, uncertainties and other factors that may cause our or our
industry's actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance or
achievements expressed or implied by such forward-looking statements. You should
not place undue reliance on these forward-looking statements.
Although we believe that the expectations reflected in our forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. In light of these risks and
uncertainties, the forward-looking events and circumstances contained in this
prospectus and the documents incorporated by reference herein may not occur,
causing actual results to differ materially from those anticipated or implied by
our forward-looking statements.
2
GAMESTOP CORP.
GameStop Corp. ("GameStop" or the "Company") is one of the leading video
game and PC entertainment software retailers in the United States. We carry one
of the largest assortments of new and used video game hardware, video game
software and accessories, PC entertainment software, and related products,
including action figures, trading cards and strategy guides. As of July 30,
2005, we operated approximately 4,300 stores in the United States, Australia,
Canada, Denmark, Finland, Germany, Guam, Ireland, Italy, New Zealand, Norway,
Puerto Rico, Spain, Sweden and the United Kingdom.
On April 17, 2005, we entered into a merger agreement (the "Merger
Agreement") with Electronics Boutiques Holding Corp. ("EB") whereby separate
subsidiaries of ours were merged with and into GameStop Holdings Corp.
("Historical GameStop") (formerly known as GameStop Corp.) and EB, respectively,
and Historical GameStop and EB became our wholly-owned subsidiaries (the
"mergers"). We changed our name from GSC Holdings Corp. to GameStop Corp. upon
completion of the mergers on October 8, 2005.
Our principal executive offices are located at 625 Westport Parkway,
Grapevine, Texas 76051, and our telephone number is (817) 424-2000. Our internet
address is www.gamestop.com.
3
RISK FACTORS
Investing in shares of our Class A common stock can be risky. Before you
invest in shares of our Class A common stock, you should carefully consider the
following factors and other information contained or incorporated in this
prospectus.
OUR SIGNIFICANT INDEBTEDNESS COULD ADVERSELY IMPACT CASH AVAILABILITY FOR GROWTH
AND OPERATIONS AND MAY INCREASE VULNERABILITY TO GENERAL ADVERSE ECONOMIC AND
INDUSTRY CONDITIONS.
Our total indebtedness is approximately $988.8 million. Our debt service
obligations with respect to this increased indebtedness could have an adverse
impact on our earnings and cash flows for as long as the indebtedness is
outstanding.
Our increased indebtedness could have important consequences to holders of
our common stock. For example, it could:
o make it more difficult for us to pay our debts as they become due during
general adverse economic and market industry conditions because any related
decrease in revenues could cause our cash flows from operations to decrease
and make it difficult for us to make our scheduled debt payments;
o limit our flexibility in planning for, or reacting to, changes in our
business and the industry in which we operate and, consequently, place us
at a competitive disadvantage to our competitors with less debt;
o require a substantial portion of our cash flow from operations to be used
for debt service payments, thereby reducing the availability of our cash
flow to fund working capital, capital expenditures, acquisitions and other
general corporate purposes; and
o result in higher interest expense in the event of increases in interest
rates since some of our borrowings are, and will continue to be, at
variable rates of interest.
Additionally, if the rating of our indebtedness is downgraded, our ability
to borrow additional funds could be limited or the interest rates applicable to
our indebtedness could increase.
There can be no assurance that we will be able to make all of the principal
and interest payments when such payments are due under our credit facilities or
the indenture governing our notes.
THE FAILURE TO SUCCESSFULLY INTEGRATE HISTORICAL GAMESTOP'S AND EB'S BUSINESSES
AND OPERATIONS IN THE EXPECTED TIMEFRAME MAY ADVERSELY AFFECT OUR FUTURE
RESULTS.
The integration of Historical GameStop and EB will be costly, complex and
time consuming, and our management will have to devote substantial resources and
efforts to it. The integration process and other disruptions from the mergers
could result in the disruption of our ongoing business or inconsistencies in
standards, controls, procedures and policies that adversely affect our ability
to maintain relationships with customers, suppliers, employees and others with
whom we have business dealings or to achieve the anticipated benefits of the
mergers.
WE MAY FAIL TO REALIZE THE ANTICIPATED SYNERGIES, COST SAVINGS AND OTHER
BENEFITS EXPECTED FROM THE MERGERS.
The success of the EB and Historical GameStop mergers will depend, in part,
on our ability to realize the anticipated growth opportunities and cost savings
from combining the businesses of Historical
4
GameStop and EB. Prior to the closing of the mergers under the Merger Agreement,
the management of Historical GameStop and EB estimated that we will realize
approximately $30 million in cost savings and operating synergies by the end of
the fiscal year ending February 3, 2007 and $50 million annually thereafter by
capitalizing on consolidation and integration of certain functions as well as
through the adoption by us of the best practices of both Historical GameStop and
EB. However, to realize the anticipated benefits from the mergers, we must
successfully combine the businesses of Historical GameStop and EB in a manner
that permits those cost savings synergies to be realized. In addition, we must
achieve these savings without adversely affecting our revenues. If we are not
able to successfully achieve these objectives, the anticipated benefits of the
mergers may not be realized fully or at all or may take longer to realize than
expected.
"MARKET OVERHANG" COULD DEPRESS THE MARKET PRICE OF OUR COMMON STOCK.
Upon the effectiveness of this registration statement on Form S-3,
9,115,950 shares of our Class A common stock will be available to be sold
immediately into the public market by the selling stockholders. That "market
overhang," as well as any sales of such shares, could depress the market price
of our common stock.
WE DEPEND UPON THE TIMELY DELIVERY OF PRODUCTS.
We depend on major hardware manufacturers, primarily Sony Computer
Entertainment of America, Nintendo of America, Inc. and Microsoft Corp., to
deliver new and existing video game platforms on a timely basis and in
anticipated quantities. Any material delay in the introduction or delivery of
hardware platforms or software titles could result in reduced sales in one or
more fiscal quarters.
WE DEPEND UPON THIRD PARTIES TO DEVELOP PRODUCTS AND SOFTWARE.
Our business depends upon the continued development of new and enhanced
video game platforms, PC hardware and video game and PC entertainment software.
Our business could suffer due to the failure of manufacturers to develop new or
enhanced video game platforms, a decline in the continued technological
development and use of multimedia PCs, or the failure of software publishers to
develop popular game and entertainment titles for current or future generation
video game systems or PC hardware.
OUR ABILITY TO OBTAIN FAVORABLE TERMS FROM OUR SUPPLIERS MAY IMPACT OUR
FINANCIAL RESULTS.
Our financial results depend significantly upon the business terms we can
obtain from our suppliers, including competitive prices, unsold product return
policies, advertising and market development allowances, freight charges and
payment terms. We purchase substantially all of our products directly from
manufacturers, software publishers and approximately five distributors. If our
suppliers do not provide us with favorable business terms, we may not be able to
offer products to our customers at competitive prices.
IF OUR VENDORS FAIL TO PROVIDE MARKETING AND MERCHANDISING SUPPORT AT HISTORICAL
LEVELS, OUR SALES AND EARNINGS COULD BE NEGATIVELY IMPACTED.
The manufacturers of video game hardware and software and PC entertainment
software have typically provided retailers with significant marketing and
merchandising support for their products. As part of this support, we receive
cooperative advertising and market development payments from these vendors.
These cooperative advertising and market development payments enable us to
actively promote and merchandise the products we sell and drive sales at our
stores and on our website. We cannot assure you that vendors will continue to
provide this support at historical levels. If they fail to do so, our sales and
earnings could be negatively impacted.
THE VIDEO GAME SYSTEM AND SOFTWARE PRODUCT INDUSTRIES ARE CYCLICAL, WHICH COULD
CAUSE SIGNIFICANT FLUCTUATION IN OUR EARNINGS.
5
The electronic game industry has been cyclical in nature in response to the
introduction and maturation of new technology. Following the introduction of new
video game platforms, sales of these platforms and related software and
accessories generally increase due to initial demand, while sales of older
platforms and related products generally decrease as customers migrate toward
the new platforms. New video game platforms have historically been introduced
approximately every five years. If video game platform manufacturers fail to
develop new hardware platforms, our sales of video game products could decline.
AN ADVERSE TREND IN SALES DURING THE HOLIDAY SELLING SEASON COULD IMPACT OUR
FINANCIAL RESULTS.
Our business, like that of many specialty retailers, is seasonal, with the
major portion of our sales and operating profit realized during the fourth
fiscal quarter, which includes the holiday selling season. During fiscal 2004,
Historical GameStop generated approximately 38% of its sales and approximately
56% of its operating earnings during the fourth quarter. During the same fiscal
year, EB generated approximately 41% of its sales and approximately 73% of its
operating earnings during the fourth quarter. Any adverse trend in sales during
the holiday selling season could lower our results of operations for the fourth
quarter and the entire year.
THE MARKET PRICE OF OUR COMMON STOCK MAY FLUCTUATE AND FUTURE SALES OF OUR
SHARES COULD ADVERSELY AFFECT THE MARKET PRICE OF OUR COMMON STOCK.
The market price of our common stock may fluctuate widely, depending upon
many factors, including our perceived prospects and the prospects of our
competitors in general, differences between our actual financial and operating
results and those expected by investors and analysts, changes in analysts'
recommendations or projections, seasonality, changes in general valuations for
retailers, changes in general economic or market conditions and broad market
fluctuations.
Future sales of our shares also could adversely affect the market price of
our common stock. If our existing stockholders sell a large number of shares, or
if we issue a large number of shares of our common stock in connection with
future acquisitions, the market price of our common stock could decline
significantly. Moreover, the perception in the public market that these
stockholders might sell shares of common stock could depress the market price of
our common stock.
OUR RESULTS OF OPERATIONS MAY FLUCTUATE FROM QUARTER TO QUARTER, WHICH COULD
RESULT IN A LOWER PRICE FOR OUR COMMON STOCK.
Our results of operations may fluctuate from quarter to quarter depending
upon several factors, some of which are beyond our control. These factors
include:
o our reliance on suppliers and vendors for sufficient quantities of their
products and for new product;
o the timing of new product releases;
o the timing of new store openings; and
o shifts in the timing of certain promotions.
These and other factors could affect our business, financial condition and
results of operations, and this makes the prediction of our financial results on
a quarterly basis difficult. Also, it is possible that our quarterly financial
results may be below the expectations of public market analysts and investors.
6
OUR FAILURE TO EFFECTIVELY MANAGE NEW STORE OPENINGS COULD LOWER OUR SALES AND
PROFITABILITY.
Our growth strategy is largely dependent upon opening new stores and
operating them profitably. Our ability to open new stores and operate them
profitably depends upon a number of factors, some of which may be beyond our
control. These factors include:
o the ability to identify new store locations, negotiate suitable leases and
build out the stores in a timely and cost efficient manner;
o the ability to hire and train skilled associates;
o the ability to integrate new stores into our existing operations; and
o the ability to increase sales at new store locations.
Our growth will also depend on our ability to process increased merchandise
volume resulting from new store openings through our inventory management
systems and distribution facility in a timely manner. If we fail to manage new
store openings in a timely and cost efficient manner, our growth may decrease.
IF OUR MANAGEMENT INFORMATION SYSTEMS FAIL TO PERFORM OR ARE INADEQUATE, OUR
ABILITY TO MANAGE OUR BUSINESS COULD BE DISRUPTED.
We rely on computerized inventory and management systems to coordinate and
manage the activities in our distribution centers, as well as to communicate
distribution information to the off-site third-party operated distribution
centers with which we work. The third-party distribution centers pick up
products from our suppliers, repackage the products for each of our stores and
ship those products to our stores by package carriers. We use an inventory
replenishment system to track sales and inventory. Our ability to rapidly
process incoming shipments of new release titles and deliver them to all of our
stores, either that day or by the next morning, enables us to meet peak demand
and replenish stores at least twice a week, to keep our stores in stock at
optimum levels and to move inventory efficiently. If our inventory or management
information systems fail to adequately perform these functions, our business
could be adversely affected. In addition, if operations in any of our
distribution centers were to shut down for a prolonged period of time or if
these centers were unable to accommodate the continued store growth in a
particular region, our business could suffer.
PRESSURE FROM OUR COMPETITORS MAY FORCE US TO REDUCE OUR PRICES OR INCREASE
SPENDING, WHICH COULD DECREASE OUR PROFITABILITY.
The electronic game industry is intensely competitive and subject to rapid
changes in consumer preferences and frequent new product introductions. We
compete with mass merchants and regional chains, including Wal-Mart Stores, Inc.
and Target Corporation; other video game and PC software specialty stores
located in malls and other locations, including toy retail chains, including
Toys "R" Us, Inc.; mail-order businesses; catalogs; direct sales by software
publishers; online retailers; and computer product and consumer electronics
stores, including Best Buy Co., Inc. and Circuit City Stores, Inc. In addition,
video games are available for rental from many video stores, some of whom, like
Hollywood Entertainment Corp. and Blockbuster, Inc., have increased the
availability of video game products for sale. Video game products may also be
distributed through other methods which may emerge in the future. We also
compete with sellers of used video game products. Some of our competitors in the
electronic game industry have longer operating histories and may have greater
financial resources than we do. In addition, the majority of our competitors
currently do not buy or sell pre-played products. If more of our competitors
choose to enter this category, it
7
may have a negative impact on our business. We also compete with other forms of
entertainment activities, including movies, television, theater, sporting events
and family entertainment centers. If we lose customers to our competitors, or if
we reduce our prices or increase our spending to maintain our customers, we may
be less profitable.
INTERNATIONAL EVENTS COULD DELAY OR PREVENT THE DELIVERY OF PRODUCTS TO OUR
SUPPLIERS.
Our suppliers rely on foreign sources, primarily in Asia, to manufacture a
significant portion of the products we purchase from them. As a result, any
event causing a disruption of imports, including the imposition of import
restrictions or trade restrictions in the form of tariffs or quotas, could
increase the cost and reduce the supply of products available to us, which could
lower our sales and profitability.
OUR INTERNATIONAL OPERATIONS EXPOSE US TO NUMEROUS RISKS.
We have international retail operations in Australia, Canada, Denmark,
Finland, Germany, Guam, Ireland, Italy, New Zealand, Norway, Puerto Rico, Spain,
Sweden, Switzerland and the United Kingdom. Because release schedules for
hardware and software introduction in these countries often differ from release
schedules in the United States, the timing of increases and decreases in foreign
sales may differ from the timing of increases or decreases in domestic sales. We
are also subject to a number of other factors that may affect our current or
future international operations. These include:
o economic downturns;
o currency exchange rate fluctuations;
o international incidents;
o government instability; and
o an increasing number of competitors entering our current and potential
markets.
IF WE ARE UNABLE TO RENEW OR ENTER INTO NEW LEASES ON FAVORABLE TERMS, OUR
REVENUE GROWTH MAY DECLINE.
All of our retail stores are located in leased premises. If the cost of
leasing existing stores increases, we cannot assure you that we will be able to
maintain our existing store locations as leases expire. In addition, we may not
be able to enter into new leases on favorable terms or at all, or we may not be
able to locate suitable alternative sites or additional sites for new store
expansion in a timely manner. Our revenues and earnings may decline if we fail
to maintain existing store locations, enter into new leases, locate alternative
sites or find additional sites for new store expansion.
THE ABILITY TO DOWNLOAD VIDEO GAMES AND PLAY VIDEO GAMES ON THE INTERNET COULD
LOWER OUR SALES.
While it is currently not possible to download video game software onto
existing video game platforms over the Internet, at some point in the future
this technology may become available. A limited selection of PC entertainment
software may currently be purchased for download over the Internet, and as
technology advances, a broader selection of PC entertainment software may become
available for purchase and download or playing on the Internet. If advances in
technology continue to expand our customers' ability to access software through
these and other sources, our customers may no longer choose to purchase video
games or PC entertainment software in our stores. As a result, our sales and
earnings could decline.
IF WE FAIL TO KEEP PACE WITH CHANGING INDUSTRY TECHNOLOGY, WE WILL BE AT A
COMPETITIVE DISADVANTAGE.
The interactive entertainment industry is characterized by swiftly changing
technology, evolving industry standards, frequent new and enhanced product
introductions and product obsolescence. These
8
characteristics require us to respond quickly to technological changes and to
understand their impact on our customers' preferences. If we fail to keep pace
with these changes, our business may suffer.
THE TERMS OF OUR CREDIT FACILITY COULD RESTRICT OUR OPERATIONAL FLEXIBILITY.
Under our credit facility, we are subject to operational covenants and
other restrictions. The covenants place restrictions on our ability to, among
other things, incur more debt or create liens on our assets, merge or
consolidate with others, make acquisitions and investments, dispose of assets
and enter into transactions with affiliates. In addition, in the event that we
had availability under the credit facility of less than 25% of the borrowing
base, we would be restricted from paying dividends or repurchasing equity
securities. These covenants could limit our operational flexibility and restrict
our ability to borrow additional funds, if necessary, to finance operations.
Failure to comply with these operational covenants could result in an event
of default under the terms of the credit facility which, if not cured or waived,
could result in the borrowed amounts becoming due and payable. In addition, our
obligations under the credit facility are secured by all assets owned by us and
our subsidiaries. An event of default under the credit facility would permit the
lenders to proceed directly against those assets.
OUR OPERATIONS ALSO MAY BE SUBSTANTIALLY RESTRICTED BY THE INDENTURE GOVERNING
THE NOTES.
The indenture for the senior floating rate notes and the senior notes
issued in connection with the mergers will impose, and the terms of any future
debt may impose, operating and financial restrictions on us. These restrictions
will, among other things, limit our ability and the ability of our restricted
subsidiaries to incur, assume or permit to exist additional indebtedness or
guaranty obligations, incur liens or agree to negative pledges in other
agreements, engage in sale and leaseback transactions, make loans and
investments, declare dividends, make payments or redeem or repurchase capital
stock, engage in mergers, acquisitions and other business combinations, prepay,
redeem or purchase certain indebtedness, including the notes, amend or otherwise
alter the terms of our organizational documents and our indebtedness, including
the notes, sell assets and transact with affiliates. We cannot assure you that
these covenants will not adversely affect our ability to finance our future
operations or capital needs or to pursue available business opportunities.
WE DEPEND UPON OUR KEY PERSONNEL AND THEY WOULD BE DIFFICULT TO REPLACE.
Our success depends upon our ability to attract, motivate and retain key
management for our stores and skilled merchandising, marketing and
administrative personnel at our headquarters. We depend upon the continued
services of our key executive officers, R. Richard Fontaine, our Chairman of the
Board and Chief Executive Officer, Daniel A. DeMatteo, our Vice Chairman and
Chief Operating Officer and David W. Carlson, our Executive Vice President and
Chief Financial Officer. The loss of services of any of our key personnel could
have a negative impact on our business.
WE MAY ENGAGE IN ACQUISITIONS WHICH COULD NEGATIVELY IMPACT OUR BUSINESS IF WE
FAIL TO SUCCESSFULLY COMPLETE AND INTEGRATE THEM.
To enhance our efforts to grow and compete, we may engage in acquisitions.
Our plans to pursue future acquisitions are subject to our ability to negotiate
favorable terms for these acquisitions. Accordingly, we cannot assure you that
future acquisitions will be completed. In addition, to facilitate future
acquisitions, we may take actions that could dilute the equity interests of our
stockholders, increase our debt or cause us to assume contingent liabilities,
all of which may have a detrimental effect on the price of our common stock.
Finally, if any acquisitions are not successfully integrated with our business,
our ongoing operations could be adversely affected.
9
LEGISLATIVE ACTIONS, HIGHER DIRECTOR AND OFFICER INSURANCE COSTS AND POTENTIAL
NEW ACCOUNTING PRONOUNCEMENTS ARE LIKELY TO CAUSE OUR GENERAL AND ADMINISTRATIVE
EXPENSES TO INCREASE AND IMPACT OUR FUTURE FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
In order to comply with the Sarbanes-Oxley Act of 2002, as well as changes
to the New York Stock Exchange listing standards and rules adopted by the
Securities and Exchange Commission (the "SEC"), we have increased our
expenditures on internal controls, and hired additional personnel and additional
outside legal, accounting and advisory services, all of which may cause our
general and administrative costs to increase. Insurers are also likely to
increase premiums as a result of the high claims rates they have incurred in the
past from other companies, and so our premiums for our directors' and officers'
insurance policies are likely to increase. Changes in the accounting rules could
materially increase the expenses that we report under generally accepted
accounting principles ("GAAP") and adversely affect our operating results.
THE LIMITED VOTING RIGHTS OF OUR CLASS A COMMON STOCK COULD IMPACT ITS
ATTRACTIVENESS TO INVESTORS AND ITS LIQUIDITY AND, AS A RESULT, ITS MARKET
VALUE.
The holders of our Class A and Class B common stock generally have
identical rights, except that holders of our Class A common stock are entitled
to one vote per share and holders of our Class B common stock are entitled to
ten votes per share on all matters to be voted on by stockholders. The
difference in the voting rights of the Class A and Class B common stock could
diminish the value of the Class A common stock to the extent that investors or
any potential future purchasers of our Class A common stock ascribe value to the
superior voting rights of the Class B common stock.
WE MAY BE IN DEFAULT UNDER CERTAIN OF OUR STORE LEASES UPON THE CLOSING OF THE
MERGERS.
Certain of our store leases contain provisions that required the consent of
the landlord before the tenant could complete a transaction such as the mergers
or take other actions that may be required following the closing of the mergers.
We may be in default under these store leases. If the landlords under these
leases attempt to exercise any remedies available to them, our business,
financial condition and results of operations may be adversely affected.
WE DO NOT EXPECT TO PAY DIVIDENDS FOR THE FORESEEABLE FUTURE, AND YOU MUST RELY
ON INCREASES IN THE TRADING PRICES OF OUR STOCK FOR RETURNS ON YOUR INVESTMENT.
We do not expect to pay dividends in the foreseeable future. Our
stockholders must rely on increases, if any, in the trading price of our common
stock for any return on their investment.
10
USE OF PROCEEDS
All net proceeds from the sale of our shares of Class A common stock being
offered by this prospectus (other than commissions and discounts of
underwriters, dealers or agents) will go to the selling stockholders who are
offering and selling their shares of Class A common stock. Accordingly, we will
not receive any of the proceeds from the sale of the shares of Class A common
stock being offered under this prospectus for the account of the selling
stockholders.
11
SELLING STOCKHOLDERS
The following table sets forth the names of the selling stockholders,
certain information regarding the beneficial ownership of shares of our Class A
common stock by the selling stockholders as of October 8, 2005 and the number of
shares of Class A common stock that the selling stockholders may offer pursuant
to this prospectus. Because the selling stockholders are not obligated to sell
their shares, and because they may also acquire publicly traded shares of our
Class A common stock, we cannot estimate how many shares the selling
stockholders will beneficially own after this offering. We may update the
disclosure in this section, to the extent we are required by law to do so.
Since the date on which the selling stockholders provided this information,
the selling stockholders may have sold, transferred or otherwise disposed of all
or a portion of their shares of Class A common stock in a transaction or series
of transactions exempt from the registration requirements of the Securities Act
of 1933, as amended. Information concerning the selling stockholder may change
from time to time and any changed information will be set forth in supplements
to this prospectus to the extent required.
Number of Shares of Class A Number of Shares
Name of Common Stock Owned of Class A Common Stock
Selling Stockholder Prior to the Offering Being Offered
EB Nevada Inc. 9,115,873(1)(2) 9,115,873
Agnes C. Kim 47(1)(2) 47
David D. Kim Trust of December 31, 1987 10(2) 10
John T. Kim Trust of December 31, 1987 10(2) 10
Susan Y. Kim Trust of December 31, 1987 10(2) 10
________________
(1) EB Nevada Inc. is a wholly-owned subsidiary of The Electronics Boutique,
Inc., all of the outstanding capital stock of which is owned by James J.
Kim, Agnes C. Kim (James J. Kim's wife), the David D. Kim Trust of December
31, 1987, the John T. Kim Trust of December 31, 1987 and the Susan Y. Kim
Trust of December 31, 1987. James J. Kim may be deemed the beneficial owner
of the shares owned by EB Nevada Inc. whether or not he is considered a
member of a "group" under Section 13(d) of the Exchange Act. David D. Kim
is the trustee of the David D. Kim Trust, John T. Kim is the trustee of the
John T. Kim Trust and Susan Y. Kim is the trustee of the Susan Y. Kim
Trust. The trustee of each trust may be deemed to be the beneficial owners
of the shares held by such trust. In addition, the trust agreement for each
of these trusts encourages the trustees of the trusts to vote the shares of
Class A common stock held by them, in their discretion, in concert with
James J. Kim's family. Accordingly, the trusts, together with their
respective trustees and James J. and Agnes C. Kim, may be considered a
"group" under Section 13(d) of the Exchange Act. This group may be deemed
to have beneficial ownership of the shares owned by EB Nevada Inc.
(2) Represents 21.5% of the outstanding shares of Class A common stock as of
October 10, 2005.
We entered into the merger agreement with EB on April 17, 2005 pursuant to
which agreement, among other things, the stockholders of EB received $38.15 in
cash and .78795 of a share of our Class A common stock for each share of EB
common stock that they owned. Also in connection with this transaction, Mr. Kim
was named one of our directors with a term that expires in 2007. The selling
stockholders were stockholders of EB. EB Nevada Inc., James J. Kim and the
Company are parties to a Registration Rights Agreement, dated as of October 8,
2005 (the "Registration Rights Agreement"), pursuant
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to which we agreed to register with the SEC the shares held by EB Nevada Inc.
described in this prospectus. The transactions contemplated by the Merger
Agreement were consummated on October 8, 2005.
PLAN OF DISTRIBUTION
The shares of Class A common stock may be sold from time to time by the
selling stockholders, or by pledgees, donees, transferees or other successors in
interest, to the public. If any such pledgees, donees, transferees or other
successors in interest wish to sell shares under the prospectus, we will file a
supplement or amendment to identify those sellers. Such sales may be made on one
or more exchanges or in the over-the-counter market, or otherwise, at prices and
at terms then prevailing or at prices related to the then current market price,
or in negotiated transactions. The selling stockholders will act independently
of us in making decisions with respect to the timing, manner and size of each
sale. These selling stockholders could transfer, distribute, devise or gift
shares by other means. Alternatively, the shares of Class A common stock may be
sold from time to time in one or more of the following transactions, without
limitation: (a) a block trade in which the broker or dealer so engaged will
attempt to sell the shares as agent but may position and resell a portion of the
block as principal to facilitate the transaction; (b) purchases by a broker or
dealer as principal and resale by such broker or dealer or for its account
pursuant to this prospectus, as supplemented; (c) an exchange distribution in
accordance with the rules of such exchange; (d) ordinary brokerage transactions
and transactions in which the broker solicits purchasers; (e) face to face
transactions between sellers and purchasers without a broker-dealer; and (f) by
writing options. In addition, any securities covered by this prospectus which
qualify for sale pursuant to Rule 144 (as applicable through Rule 145) under the
Securities Act of 1933, as amended, may be sold under Rule 144 (as applicable
through Rule 145) rather than pursuant to this prospectus, as supplemented. From
time to time the selling stockholders may engage in short sales, short sales
against the box, puts and calls and other transactions in our securities or
derivatives thereof, and may sell and deliver the shares related to these
transactions. For example, these selling stockholders may (i) enter into
transactions involving short sales of the shares by broker-dealers in the course
of hedging the positions they assume with such selling stockholder, (ii) sell
shares short themselves and deliver the shares registered hereby to settle such
short sales or to close out stock loans incurred in connection with their short
positions, (iii) write call options, put options or other derivative instruments
(including exchange-traded options or privately negotiated options) with respect
to the shares, or which they settle through delivery of the shares, (iv) enter
into option transactions or other types of transactions that require such
selling stockholders to deliver shares to a broker, dealer or other financial
institution, who may then resell or transfer the shares under this prospectus,
or (v) loan the shares to a broker, dealer or other financial institution, who
may sell the loaned shares.
From time to time, the selling stockholders may pledge their shares
pursuant to the margin provisions of their respective customer agreements with
their respective brokers. Upon a default by a selling stockholder, the broker
may offer and sell the pledged shares of Class A common stock from time to time
as described above.
Any broker and any broker-dealers, agents or underwriters that participate
with the selling stockholders in the distribution of the shares of Class A
common stock may be deemed to be "underwriters" within the meaning of the
Securities Act. In this case, any commissions received by these broker-dealers,
agents or underwriters and any profit on the resale of the shares of Class A
common stock purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act. Because the selling stockholders may be
deemed to be underwriters within the meaning of Section 2(11) of the Securities
Act, they will be subject to the prospectus delivery requirements of the
Securities Act. We have advised the selling stockholders that the
anti-manipulation rules under the Securities Exchange Act of 1934, as amended,
including Regulation M may apply to sales of the shares of Class A common stock
by the selling stockholders.
Under the Registration Rights Agreement, the selling stockholders may be
prohibited from selling the shares offered pursuant to this prospectus at times.
If our board of directors makes a good faith determination (i) that continued
use by the selling stockholders of the registration statement for sales of the
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shares offered hereunder would require disclosure in such registration statement
(or the prospectus supplements relating thereto) of material, nonpublic
information concerning the Company, its business or prospects or any proposed
transaction involving the Company, and (ii) that such disclosure would be
premature and would be adverse to the Company, its business or prospects or any
such proposed transaction or would make the successful consummation by the
Company of any such transaction significantly less likely, then the selling
stockholders may not offer shares pursuant to the registration statement for up
to 60 days after we deliver a certificate signed by our Chief Executive Officer
alerting the selling stockholders of such determination of our Board of
Directors. We may not exercise this right to suspend the sales of our selling
stockholders more than two times during any year period following October 8,
2005. In addition, if we register securities for sale, we may request that
selling stockholders suspend their sales of the shares offered pursuant to this
prospectus during the ten-day period prior to any period during which an
exchange ratio or similar valuation formula based upon the trading prices of the
Company's common stock is being calculated.
The Company has agreed to use its reasonable best efforts to keep this
registration statement effective until the earlier of (i) the date when all of
the securities registered hereunder shall have been sold, or (ii) the date all
securities registered hereunder are eligible to be sold without restriction
pursuant to Rule 144(k) of the Securities Act. All expenses of registration of
the Class A common stock (other than commissions and discounts of underwriters,
dealers or agents), estimated to be approximately $60,000, shall be borne by us.
As and when we are required to update this prospectus, we may incur additional
expenses in excess of this estimated amount.
DESCRIPTION OF CAPITAL STOCK
The following is a summary of the material terms of our capital stock.
Because it is only a summary, it does not contain all the information that may
be important to you. Accordingly, you should read carefully the more detailed
provisions of our amended and restated certificate of incorporation and our
amended and restated bylaws, which are filed as Exhibits 3.1 and 3.2,
respectively, to the Company's Registration Statement on Form S-4 (which is
incorporated by reference herein).
Common Stock
Our amended and restated certificate of incorporation authorizes us to
issue up to (i) 300,000,000 shares of Class A common stock, par value $.001 per
share, and (ii) 100,000,000 shares of Class B common stock, par value $.001 per
share. As of October 10, 2005, there were 42,434,818 shares of our Class A
common stock and 29,901,662 million shares of our Class B common stock
outstanding.
Each holder of Class A common stock and Class B common stock is entitled to
receive dividends as may be declared by our board of directors of from time to
time out of assets or funds legally available for payment, subject to the
holders of our preferred stock.
Each holder of Class A common stock is entitled to one vote per share. Each
holder of Class B common stock is entitled to ten votes per share. Subject to
the rights, if any, of the holders of any series of preferred stock and subject
to applicable law, all voting rights are vested in the holders of common stock.
Holders of shares of common stock are not entitled to exercise any right of
cumulative voting.
In the event of a voluntary or involuntary liquidation, dissolution or
winding up of GameStop, the holders of Class A common stock and Class B common
stock will be entitled to share equally in any of the assets available for
distribution after GameStop has paid in full all of its debts and after the
holders of all series of GameStop's outstanding preferred stock have received
their liquidation preferences in full.
The issued and outstanding shares of common stock are fully paid and
nonassessable. Holders of common stock have no preemptive or preferential
rights. Shares of common stock are not convertible into
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shares of any other class of capital stock. The Bank of New York is the transfer
agent for the common stock. GameStop may from time to time after the engage
another transfer agent for its stock as business circumstances warrant.
Preferred Stock
Our amended and restated certificate of incorporation authorizes us to
issue up to 5,000,000 shares of preferred stock, 500,000 of which are designated
as "Series A junior preferred stock," in one or more series, and to determine
the voting powers, preferences and relative, optional and other special rights
of the shares of such series, and the qualifications, limitations or
restrictions thereof.
Subject to the determination of our board of directors in any certificate
or designation for a series of preferred stock, our preferred stock would
generally have preference over common stock with respect to the payment of
dividends and the distribution of assets in the event of a liquidation or
dissolution of us.
In connection with the Rights Agreement described below, our board of
directors created a Series A junior preferred stock. No shares of Series A
junior preferred stock are outstanding as of the date of this prospectus.
Holders of Series A junior preferred stock are entitled to receive
dividends when, as and if declared by our board of directors out of funds
legally available for the purpose, payable in cash on the 30th day of each
April, July, October and January in each year or such earlier date in any such
month on which dividends on the common stock are payable.
Each holder of Series A junior preferred stock is entitled to 10,000 votes
per share on all matters submitted to a vote of our stockholders.
In the event of a voluntary or involuntary liquidation, dissolution or
winding up of us, the holders of Series A junior preferred stock will be
entitled to receive $1,000 per share, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared. After the full
payment of the amount in the preceding sentence, no additional distributions
shall be made to holders of Series A junior preferred stock unless the holders
of common stock receive the Common Adjustment (as more fully described in our
amended and restated certificate of incorporation). Following the payment of the
Common Adjustment, holders of Series A junior preferred stock and holders of
common stock will receive their ratable and proportionate share of the remaining
assets to be distributed, on a per share basis.
Rights Agreement
Under GameStop's rights agreement, one right (a Right) is attached to each
outstanding share of GameStop Class A common stock and each outstanding share of
GameStop Class B Common Stock which will entitle the registered holder to
purchase from GameStop one one-thousandth of a share of Series A junior
preferred stock at a price of $100.00 per one one-thousandth of a share (the
Purchase Price), subject to adjustment. The following summary is qualified in
its entirety by reference to the complete text of the rights agreement attached
as Exhibit 4.2 to the Registration Statement on Form S-4 (which is incorporated
by reference herein).
Until the earlier to occur of (i) a public announcement that, without the
prior consent of the board of directors of GameStop, a person or group of
affiliated or associated persons (an Acquiring Person) has acquired beneficial
ownership of 15% or more of the voting power of the outstanding shares of
GameStop common stock (or an additional 5% or more of the voting power of the
outstanding shares of GameStop common stock in the case of any Acquiring Person
who beneficially owns 15% or more of the voting power of the outstanding shares
of GameStop common stock as of the date of the rights agreement) or (ii) 10
business days (or such later date as may be determined by action of the board of
directors prior to such time
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as any person becomes an Acquiring Person) following the commencement of, or
announcement of an intention to make, a tender offer or exchange offer the
consummation of which would result in the beneficial ownership by a person or
group of 15% or more of the voting power of the outstanding shares of GameStop
common stock (the earlier of such dates being called the Distribution Date), the
Rights will be evidenced, with respect to any of the GameStop common stock
certificates outstanding, by such GameStop common stock certificate.
The Rights Agreement provides that, until the Distribution Date, the Rights
will be transferred with and only with the shares of GameStop common stock.
Until the Distribution Date (or earlier redemption or expiration of the Rights),
new GameStop common stock certificates issued in connection with and after the
mergers, upon transfer or new issuance of shares of GameStop common stock, will
contain a notation incorporating the Rights Agreement by reference. Until the
Distribution Date (or earlier redemption or expiration of the Rights), the
surrender for transfer of any certificates for shares of GameStop common stock
outstanding as of the Record Date, even without such notation or a copy of this
Summary of Rights being attached thereto, will also constitute the transfer of
the Rights associated with the shares of GameStop common stock represented by
such certificate. As soon as practicable following the Distribution Date,
separate certificates evidencing the Rights (Right Certificates) will be mailed
to holders of record of the shares of GameStop common stock as of the close of
business on the Distribution Date and such separate Right Certificates alone
will evidence the Rights.
The Rights are not exercisable until the Distribution Date. The Rights will
expire on October 28, 2014 (the Final Expiration Date), unless the Final
Expiration Date is extended or unless the Rights are earlier redeemed by
GameStop, in each case, as described below.
The Purchase Price payable, and the number of one one-thousandth shares of
preferred stock or other securities or property issuable, upon exercise of the
Rights are subject to adjustment from time to time to prevent dilution (i) in
the event of a stock dividend on, or a subdivision, combination or
reclassification of, the preferred stock, (ii) upon the grant to holders of the
preferred stock of certain rights or warrants to subscribe for or purchase
preferred stock at a price, or securities convertible into preferred stock with
a conversion price, less than the then current market price of the preferred
stock or (iii) upon the distribution to holders of the preferred stock of
evidences of indebtedness or assets (excluding regular periodic cash dividends
paid out of earnings or retained earnings or dividends payable in preferred
stock) or of subscription rights or warrants (other than those referred to
above).
The number of outstanding Rights associated with each share of GameStop
common stock and the voting and economic rights of each one one-thousandth of a
share of preferred stock issuable upon exercise of each Right are also subject
to adjustment in the event of a stock split of the shares of GameStop common
stock or a stock dividend on the shares of GameStop common stock payable in
shares of GameStop common stock or subdivisions, consolidations or combinations
of the shares of GameStop common stock occurring, in any such case, prior to the
Distribution Date.
In the event that any person becomes an Acquiring Person, each holder of a
Right, other than Rights beneficially owned by the Acquiring Person and its
Affiliates and Associates (which will thereafter be null and void), will
thereafter have the right to receive upon exercise of the Right and payment of
the then current Purchase Price that number of one one-thousandths of a share of
preferred stock having a market value of two times that Purchase Price.
In the event that, after the Distribution Date, GameStop is acquired in a
merger or other business combination transaction or 50% or more of its
consolidated assets or earning power are sold, proper provision will be made so
that each holder of a Right will thereafter have the right to receive, upon the
exercise thereof at the then current Purchase Price of the Right, that number of
shares of common stock of
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the acquiring company which at the time of such transaction will have a market
value of two times that Purchase Price.
If GameStop does not have sufficient shares of preferred stock to satisfy
such obligation to issue preferred stock, or if the board of directors so
elects, GameStop shall deliver upon payment of the Purchase Price of a Right an
amount of cash or shares of GameStop common stock or securities equivalent in
value to the shares of preferred stock issuable upon exercise of a Right;
provided that, if GameStop fails to meet such obligation within 30 days
following the later of (x) the first occurrence of an event triggering the right
to purchase shares of GameStop common stock and (y) the date on which GameStop's
right to redeem the Rights expires, GameStop must deliver, upon exercise of a
Right but without requiring payment of the Purchase Price then in effect, shares
of preferred stock (to the extent available) and cash equal in value to the
difference between the value of the shares of preferred stock otherwise issuable
upon the exercise of a Right and the Purchase Price then in effect. The board of
directors may extend the 30 day period described above for up to an additional
60 days to permit the taking of action that may be necessary to authorize
sufficient additional shares of preferred stock to permit the issuance of
preferred stock upon the exercise in full of the Rights.
At any time after the acquisition by a person or group of affiliated or
associated persons of beneficial ownership of 15% or more of the voting power of
the outstanding shares of GameStop common stock and prior to the acquisition by
such person or group of 50% or more of the voting power of the outstanding
shares of GameStop common stock, the board of directors of GameStop may exchange
the Rights (other than Rights owned by such person or group which have become
void), in whole or in part, at an exchange ratio of one one-thousandth of a
share of preferred stock or one share of GameStop common stock per Right
(subject to adjustment).
With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional shares of preferred stock will be issued
(other than fractions which are integral multiples of one one-thousandth of a
share of preferred stock) and in lieu thereof, an adjustment in cash will be
made, based on the market price of the preferred stock on the last trading day
prior to the date of exercise. At any time prior to the acquisition by a person
or group of affiliated or associated persons of beneficial ownership of 15% or
more of the voting power of the outstanding shares of GameStop common stock, the
board of directors of GameStop may redeem the Rights in whole, but not in part,
at a price of $.01 per Right (the Redemption Price). The redemption of the
Rights may be made effective at such time, on such basis and with such
conditions as the board of directors in its sole discretion may establish.
Immediately upon any redemption of the Rights, the right to exercise the Rights
will terminate and the only right of the holders of Rights will be to receive
the Redemption Price.
The preferred stock purchasable upon the exercise of the Rights will be
nonredeemable and junior to any other series of preferred stock GameStop may
issue (unless otherwise provided in the terms of such stock). Each share of
preferred stock will be entitled to a preferred dividend equal to the greater of
(a) $1.00 or (b) 1,000 times any dividend declared on the shares of GameStop
common stock. In the event of liquidation, the holders of preferred stock will
receive a preferred liquidation payment equal to $1,000 per share of preferred
stock, plus an amount equal to accrued and unpaid dividends and distributions
thereon. Each share of preferred stock will have 10,000 votes, voting together
with the shares of GameStop common stock. Notwithstanding the immediately
preceding sentence, in the event that dividends on the preferred stock shall be
in arrears in an amount equal to six quarterly dividends thereon, holders of the
preferred stock shall have the right, voting as a class, to elect two of
GameStop's directors. In the event of any merger, consolidation or other
transaction in which shares of GameStop common stock are exchanged, each share
of preferred stock will be entitled to receive 1,000 times the amount and type
of consideration received per share of GameStop common stock. The rights of the
preferred stock as to dividends, liquidation and voting, and in the event of
mergers and consolidations, are protected by customary anti-dilution provisions.
17
Fractional shares of preferred stock in integral multiples of one one-thousandth
of a share of preferred stock will be issuable. In lieu of fractional shares
other than fractions that are multiples of one one-thousandth of a share, an
adjustment in cash will be made based on the market price of the preferred stock
on the last trading date prior to the date of exercise.
The terms of the Rights may be amended by the board of directors of
GameStop without the consent of the holders of the Rights, except that from and
after such time as any person becomes an Acquiring Person no such amendment may
adversely affect the interests of the holders of the Rights (other than the
Acquiring Person and its affiliates and associates).
Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of GameStop, including, without limitation, the right to
vote or to receive dividends.
The Rights have certain anti-takeover effects. The Rights will cause
substantial dilution to a person or group that attempts to acquire GameStop
without conditioning the offer on the Rights being redeemed or a substantial
number of Rights being acquired. However, the Rights generally should not
interfere with any merger or other business combination approved by the board of
directors.
LEGAL MATTERS
Certain legal matters in connection with the shares of Class A common stock
being offered hereby have been passed upon for the Company by Bryan Cave LLP,
1290 Avenue of the Americas, New York, New York 10104. Michael N. Rosen, a
partner at Bryan Cave LLP, is a director and Secretary of the Company.
EXPERTS
Historical GameStop. The audited consolidated statements and schedule of
Historical GameStop incorporated in this prospectus by reference to Historical
GameStop's Annual Report on Form 10-K, as amended, as of January 29, 2005 and
January 31, 2004, and for the 52-week periods ended January 29, 2005, January
31, 2004 and February 1, 2003, and management's assessment of the effectiveness
of internal control over financial reporting as of January 29, 2005, have been
incorporated in reliance on the reports of BDO Seidman, LLP, an independent
registered public accounting firm, given on the authority of the that firm as
experts in accounting and auditing.
EB. The consolidated financial statements and schedule of EB as of January
29, 2005 and January 31, 2004, and for each of the years in the three-year
period ended January 29, 2005, and management's assessment of the effectiveness
of internal control over financial reporting as of January 29, 2005 have been
incorporated by reference herein in reliance upon the reports of KPMG LLP,
independent registered public accounting firm, incorporated by reference herein,
and upon the authority of said firm as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We are a reporting company and file annual, quarterly and special reports,
proxy statements and other information with the SEC. In the past, our
predecessor companies, GameStop Holdings Corp. ("GHC") and Electronics Boutique
Holdings Corp. ("EB") also filed annual, quarterly and special reports, proxy
statements and other information with the SEC. You may read and copy such
material at the Public Reference Room maintained by the SEC at 450 Fifth Street,
N.W., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for more
information on the operation of the Public Reference Room. GHC's, EB's and our
SEC filings may be found at the SEC's web site at http://www.sec.gov. You may
inspect GHC's or our SEC filings at the offices of the New York Stock Exchange,
20 Broad Street, New York, New York 10005. You may inspect EB's filings at the
office of The NASDAQ Stock Market, Inc., 1 Liberty Plaza, New
18
York, New York 10006. In addition, we make available on our website
(http://www.gamestop.com), under "Investor Relations -- SEC Filings," free of
charge, GHC's, EB's and our annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K, and amendments to those reports as soon
as reasonably practicable after we electronically file or furnish such material
with the SEC.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to "incorporate by reference" information that we file
with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
an important part of this prospectus, and information that we file later with
the SEC will automatically update and supersede this information. We incorporate
by reference the documents listed below and any future filings we will make with
the SEC under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act:
1. Historical GameStop's Annual Report on Form 10-K for the fiscal year ended
January 29, 2005, filed with the SEC on April 11, 2005;
2. Historical GameStop's Annual Report on Form 10-K/A for the fiscal year
ended January 29, 2005, filed with the SEC on May 20, 2005;
3. Historical GameStop's Annual Report on Form 10-K/A for the fiscal year
ended January 29, 2005, filed with the SEC on September 2, 2005;
4. Historical GameStop's Quarterly Report on Form 10-Q for the quarter ended
April 30, 2005, filed with the SEC on June 3, 2005;
5. Historical GameStop's Quarterly Report on Form 10-Q/A for the quarter ended
April 30, 2005, filed with the SEC on September 2, 2005;
6. Historical GameStop's Quarterly Report on Form 10-Q for the quarter ended
July 30, 2005, filed with the SEC on September 7, 2005;
7. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
March 15, 2005;
8. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
March 23, 2005;
9. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
April 15, 2005;
10. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
April 18, 2005;
11. Historical GameStop's Current Report on Form 8-K, filed with the SEC on May
24, 2005;
12. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
June 9, 2005;
13. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
September 6, 2005;
14. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
September 9, 2005;
15. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
September 12, 2005;
16. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
September 27, 2005;
17. Historical GameStop's Current Report on Form 8-K, filed with the SEC on
September 30, 2005;
18. The Company's Registration Statement on Form S-4;
19
19. The description of the Class A common stock contained in the Company's
Registration Statement on Form 8-A filed October 3, 2005, including any
amendment or report filed with the SEC for the purpose of updating such
description;
20. The Company's Current Report on Form 8-K, filed with the SEC on October 12,
2005;
21. EB's Annual Report on Form 10-K for the fiscal year ended January 29, 2005,
filed with the SEC on April 7, 2005;
22. EB's Annual Report on Form 10-K/A for the fiscal year ended January 29,
2005, filed with the SEC on May 20, 2005;
23. EB's Annual Report on Form 10-K/A for the fiscal year ended January 29,
2005, filed with the SEC on September 2, 2005;
24. EB's Quarterly Report on Form 10-Q for the quarter ended April 30, 2005,
filed with the SEC on June 9, 2005;
25. EB's Quarterly Report on Form 10-Q/A for the quarter ended April 30, 2005,
filed with the SEC on September 2, 2005;
26. EB's Quarterly Report on Form 10-Q for the quarter ended July 30, 2005,
filed with the SEC on September 8, 2005;
27. EB's Current Report on Form 8-K, filed with the SEC on March 15, 2005;
28. EB's Current Report on Form 8-K, filed with the SEC on March 22, 2005;
29. EB's Current Report on Form 8-K, filed with the SEC on April 18, 2005;
30. EB's Current Report on Form 8-K, filed with the SEC on May 27, 2005;
31. EB's Current Report on Form 8-K, filed with the SEC on June 9, 2005;
32. EB's Current Report on Form 8-K, filed with the SEC on June 15, 2005;
33. EB's Current Report on Form 8-K, filed with the SEC on August 30, 2005;
34. EB's Current Report on Form 8-K, filed with the SEC on September 6, 2005;
35. EB's Current Report on Form 8-K, filed with the SEC on October 7, 2005; and
36. EB's Current Report on Form 8-K, filed with the SEC on October 11, 2005.
This prospectus is part of a registration statement we have filed with the
SEC relating to our Class A common stock. As permitted by SEC rules, this
prospectus does not contain all of the information included in the registration
statement and the accompanying exhibits and schedules we file with the SEC. You
may refer to the registration statement and the exhibits and schedules for more
information about us and our Class A common stock. The registration statement
and exhibits and schedules are also available at the SEC's Public Reference Room
or through its web site.
You may request a copy of these filings at no cost, by writing or
telephoning us at the following address:
GameStop Corp.
625 Westport Parkway
Grapevine, Texas 76051
(817) 424-2800
Attn: Investor Relations
20
9,115,950 Shares
GAMESTOP CORP.
Class A Common Stock
________________
PROSPECTUS
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November 4, 2005