Mike Ashley, the owner of Sports Direct has bought 44 million shares in GAME. That’s the equivalent of 25.75% of GAME’s share capital.
Reported by gamesindustry.biz, this purchase comes after GAME issued a profit warning last month. The company stated that the company would be delivering profits “substantially below previous expectations”.
Following on from Mike Ashley’s purchase of the shares, the retailers share value jumped from below 20p a share to 27.5p a share.
GAME has confirmed the news of this purchase in a statement this morning. The company stated that “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,”
They continued “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 to explore the clear opportunities that a constructive partnership and collaboration can deliver for all stakeholders in the gaming, live events and rapidly growing esports markets in which it operates.”