GAME Faces Takeover Bid
Any gamer from the UK will undoubtedly be aware that there are only a handful of high street gaming retailers. Of those, GAME is without a doubt, if not the best known, then at least the most established. It also shouldn’t come as any shock to hear that for the last 5 years, the company has had more than a few problems attempting to keep the books balanced.
It is a case remarkably similar to that of GameStop in America which we reported only yesterday that the company took a huge hit in the share price. A factor that has only added to the growing rumours that the brand may be on the verge of shut down.
In a report via the BBC, however, GAME may be set to see things get a huge shake-up. Mike Ashley (owner of Sports Direct) has launched a bid to purchase the company.
Who is Mike Ashley?
Mike Ashley is the owner of Sports Direct. A company which has made something of a speciality in recent years of purchasing failing businesses. Specifically in an attempt to turn big brand companies around and get them profitable again. He is, however, perhaps better known for being the (largely disliked) Chairman of Newcastle United.
With the company already owning 38.5% of GAME’s stock, however, this has now been followed up with a formal bid of just over £50m to purchase the company outright.
Restructuring
If successful, it would at least secure the short-term future of the company. Albeit with probably a lot of sacrifices. It has, for example, already been suggested that one of the first moves they would make would be to close many of the stores. This, by proxy, would result in job losses.
It has even been suggested that they might even look to ‘combine’ both the Sports Direct locations with GAME. The short version, however, is that based on the reputation Mike Ashley has, I’m pretty sure I wouldn’t want to be working for him!
What do you think? – Let us know in the comments!
