GameStop sells Canadian operations to toy entrepreneur; shares down

** GameStop's shares down 3% at $25.80 amid broader fall in equities on Tues after video-game retailer divests its Canadian business** Co late Mon announced French-Canadian entrepreneur Stephan Tetrault acquired its over 185 Canadian stores** The business to be renamed EB Games Canada, its name before GME rebranded it in 2021** Terms of the deal were not disclosed. Transition to occur in coming months** "This isn't just a business decision—it's about bringing something back that Canadians truly loved," said Tetrault, who will be both owner and CEO ** GME's Canadian segment generated $204 mln in sales in 2024, ~5% of co's total sales of ~$3.8 bln, per a filing ** Tetrault, founder of toymaker Imports Dragon and co-owner of McFarlane Toys, made an equity investment last month in Mastermind Toys** In Feb, GME disclosed it was looking to sell its operations in France and Canada** About a month later, GME said it would invest in bitcoin , mimicking the playbook of cryptocurrency hoarder Strategy ** With move on Tues, GME shares off ~18% YTD