GameStop to Distribute Warrants as Special Dividend to Shareholders

2025-09-10 companies

Grapevine, Wednesday, 10 September 2025.
GameStop will issue 59 million warrants on October 7, 2025, allowing shareholders to buy stock at $32 each. This could raise $1.9 billion if fully exercised.

Understanding the Special Dividend

GameStop Corp. (NYSE: GME) has announced a strategic move by issuing a special dividend in the form of warrants to its shareholders. As of the record date, October 3, 2025, shareholders will receive one warrant for every ten shares of common stock held. This distribution is expected to happen on October 7, 2025, totaling approximately 59 million warrants, with 45 million allocated to shareholders and 14 million to convertible noteholders [1][2][3].

Financial Implications and Market Impact

The warrants, which will be tradable on the New York Stock Exchange under the ticker ‘GME WS,’ allow holders to purchase one share of GameStop common stock at an exercise price of $32.00. If all warrants are exercised, GameStop could raise up to $1.9 billion in gross proceeds. This substantial inflow of capital is intended to be used for general corporate purposes, including investments and potential acquisitions [1][4][5].

Benefits for Shareholders and Noteholders

Shareholders do not need to take any action to receive the warrants, as they will be issued automatically without any cash payment or other consideration required. Additionally, holders of GameStop’s Convertible Senior Notes due 2030 and 2032 will receive warrants on an as-converted basis, calculated based on the face value of their notes [1][2][6].

Market Reactions and Future Outlook

The announcement of the warrant dividend has invigorated interest in GameStop’s stock, which saw a 5% increase in extended trading following the news. This move is seen as part of GameStop’s broader strategy to enhance shareholder value and strengthen its financial position amid its ongoing transformation efforts in the gaming and retail sectors [4][7].

Sources

dividend GameStop