Gamestop Pops on Share/Debt Buyback (GME)

Shares of Gamestop Corp. GME are popping by over 3.50% in the after-hours after the company announced a $500 million share and debt buyback program. $300 million of the additional funds will be used in the company's share repurchase plan and $200 million will be used to retire the company's Senior Notes. This program is incremental to the initial $300 million stock repurchase plan announced in January 2010 and completed in the company's second fiscal quarter of 2010. J. Paul Raines, Chief Executive Officer, stated, "We are pleased that the Board authorized this additional buyback in 2010 as the next phase in our long-term plan to increase total shareholder return. We have confidence in the business to continue delivering consistent cash flow, which gives us the ability to invest in our core business, digital initiatives and enhance shareholder value." GameStop Corp. is a retailer of video game products and personal computer entertainment software. The company sells new and used video game hardware, video game software and accessories, as well as PC entertainment software, and related accessories and other merchandise.