Sports Direct Takes a Slice of GAME
Monday 17th July 2017, 03:16 | written by: Gabriel SciberrasJust in, Sports Direct has managed to swallow a quarter of GAME. The owner of the sport chain, Mike Ashley, snatched $44 million worth of GAME shares, approximately 26 per cent of the whole company. GAME is a British gaming peripheral retail store which feeds gamers needs acreoss the globe.
It’s evident that the company has fallen under rough times as of late due to a dangerous revision of its financial expectations after a disappointing beginning to 2017. This definitely wounded the organisation. Funnily enough, GAME blames the problem on the low stock of Nintendo Switch units. Not a very impressive excuse.
Sports Direct is also not exactly thriving; with a shade of controversy thrown onto it after many judiciary procedures. A recent lawsuit regarding a business deal worth £14 million haunted them this year, preceeded by an exposing investigation into working conditions and wage for the chain. Mike Ashley had his hands tied and paid for the exploitation.
The chain also has affiliations and stakes with other retailers, including Debenhams and French Connection. Below are a few words from a GAME representative:
"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.
"GAME is pleased that the strategic value of the group has been recognised by Sports Direct through this acquisition of a 25.75 per cent 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."
Sports Direct is popular for its wicked prices and discounts on everything sports. However, with this growing control over GAME, perhaps gaming equipment could be victim to such deals for the benefit of us all.