It is no secret that UK retailer, GAME, has been in trouble over the last five years. The gaming store has struggled financially as physical game sales continue to decline and more people turn to shopping online instead of the high street. GAME’s most recent money-making attempt saw the company set up video game stands in Sports Direct stores across the country and now, it looks like Sports Direct may take over GAME entirely.
Sports Direct has made an offer to buy GAME for £0.30 per share, which would equate to around £52 million in total. The company began showing interest in GAME back in 2017, when it acquired a 25 percent stake in the company. That stake has since been increased to 38.5 percent, which means Sports Direct needs to make a mandatory takeover offer.
GAME has issued a notice to investors to inform them of the bid but so far, a final decision has yet to be made. We should hear more on that front very soon.
If the deal goes through, there will likely be some wide changes taking place at GAME to cut costs and improve profitability in an increasingly digital world.
KitGuru Says: At the very least, a takeover like this would ensure that GAME remains alive in some capacity moving forward. However, this does make me wonder if there will be an increased focus on selling sports games and blockbuster shooters within Sports Direct, rather than having big all-encompassing dedicated GAME stores.