Sports Direct buys a 25.75% stake in GAME
Sports Direct buys a 25.75% stake in GAME
GAME is easily one of the UK’s largest game distributors, recently acquiring Insomnia and taking a huge interest in the growing eSports scene.
In recent months, GAME has had a difficult time, cutting their profits forecast blaming the lack of Nintendo Switch consoles amongst other factors harming sales. Taking advantage of this situation and GAME’ struggling share price, Sports Direct, which is owned by Mike Ashley, has purchased 44 million shares (around 25.75%) for the company for £10 million.
Both Sports Direct and GAME are now set to form a strategic partnership moving forward, where both companies will work collaboratively to benefit each company. This will likely see Sports Direct take a merchandising role for Multiplay (who are owned by GAME), with hopes of monetizing Insomnia and other UK-based eSports events. Below is a comment from GAME on the acquisition.
Game is aware that Sports Direct has taken significant strategic equity stakes in a number of retail and brand businesses across both the UK and USA, and is a leading retailer which partners with major global brands and suppliers.The group looks forward to working collaboratively with Sports Direct to explore the clear opportunities that a constructive partnership and collaboration can deliver for all stakeholders in the gaming, live events and rapidly growing e-sports markets in which it operates.
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