GameStop announces $300 million stock buyback plan

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GRAPEVINE, Texas (AP) — Video game retailer GameStop Corp. said Monday it has authorized a $300 million stock buyback plan and plans to spend $200 million on opening new stores and other types of expansion.

The company said the buyback would boost its earnings per share by about 10 percent at today’s stock prices by reducing the number of shares outstanding.

GameStop said its plans also include $200 million for opening 400 stores and other expenditures. GameStop also said it would reserve $100 million for acquisitions.

It said it expects to end the 2010 fiscal year with $700 million in cash after it executes the new plans for its money.

The company, based in Grapevine, warned the program may be suspended or terminated at any time.

The stock rose 47 cents to 20.79 in extended trading following the announcement. The shares had finished the regular trading session up 3 cents at $20.32.