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Sports Direct, the retail giant owned by Newcastle United owner and billionaire Mike Ashley, has bought 44 million shares in Game Digital. That works out to 25.75% of the GAME group. This news comes after GAME issued a profit warning at the end of last month, even partly blaming the lack of Nintendo Switch stock for its ails. Yes, really.
The response to this profit warning was another drop in share price value to 20p, which is pretty bleak, considering that when GAME was actually floated on the stock market three years ago it was almost 200p per share. In response to Sports Direct’s acquisition the share price went up, and currently it’s just over 27.5p per share.
Reported initially by Sky News, Sports Direct is thought to have acquired its almost 26% stake in Game from City institutions including Invesco.Â
Naturally, GAME had positive things to say about the news, with a statement reading, ‘GAME is pleased that the strategic value of the group has been recognised by Sports Direct through this acquisition of a 25.75% stake. The Group looks forward to working collaboratively with Sports Direct’. It wasn’t confirmed if this was being read out through gritted teeth and masses of tears.
So what does all this mean? Business as usual for Sports Direct, and perhaps the implementation of a decidedly questionable working environment in GAME’s online and high-street stores throughout the country. Who knows?
