Video game retailer GameStop (NYSE: GME) has been in trouble for quite some time and that has been reflected in its stock price. However, in September the stock rallied strongly. On Thursday, the GameStop stock made a roaring move and rallied by as much as 45%. The impressive rally in the stock came about after the company made an announcement regarding a potential deal with Microsoft.

Partnership with Microsoft

On Thursday, GameStop announced that it entered into a strategic partnership with tech behemoth Microsoft. It goes without saying that it is a significant piece of news and after the news broke, the stock rallied strongly.

The partnership with Microsoft is aimed at growing the digital presence of GameStop substantially. GameStop is going to use the cloud-based offerings of Microsoft in order to bring about this transformation.

Some of the Microsoft products that are going to be leveraged for this purpose include enterprise resource planning (ERP) and customer relationship management (CRM) services from the Dynamics 365 suite.

What it Entails

GameStop has been aiming to bring about a digital transformation in its operations for quite some time and now it will have the tools to put it into motion. The company is going to use Microsoft’s cloud platform in order to give its employees greater access to key data.

However, that is not all. The GameStop stores are also going to be equipped with Surface devices. That will help the company’s retail employees to move about quickly inside the store. Lastly, GameStop will also deploy Microsoft Teams and Microsoft 365 so as to enhance the productivity of its operations.

September Rally

In this regard, it is also necessary to point out that the GameStop stock had recorded significant gains in September. The stock gained by as much as 52.7% last month after it emerged that an activist investor had taken up a significant stake in the company.

Towards the end of August, GameStop submitted a filing to the market regulator Securities and Exchange Commission revealing that RC Ventures had raised its stake to as much as 9.6%.

However, on September 21 the Chief Executive Officer of RC Ventures Ryan Cohen made another filing and disclosed that the company had raised its stake further to 9.98%.

The stock rose after it was reported that RC Ventures was going to push GameStop into becoming more of an e-commerce company. The focus was apparently going to be on pop culture and video games.

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