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Confirmed: Rhino sold to GameStop [update 1]

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As rumored last week, Blockbuster has reached an agreement to sell Rhino Video Games to GameStop. Wedbush Morgan analyst Michael Pachter estimates that GameStop will pay less than $40 million for the small retail chain, which operates 72 locations in the southeastern United States and averages roughly $550,000 in annual sales (per store). Blockbuster has owned Rhino since May 2004, but has elected to divest this non-core asset as the company focuses on its Total Access rental service. GameStop was the obvious buyer, as the umbrella corporation already controls an estimated 98% of the US's used games market.

GameStop chairman and CEO R. Richard Fontaine explained that Rhino's integration into the GameStop network would result in "operating synergies." That's business-speak for "no more 2-for-1 trade-ins."

Update: clarified revenue averages.

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