44 million shares in GAME bought by Sport Direct

  • 44 million shares in GAME bought by Sport Direct

44 million shares in GAME bought by Sport Direct

Mike Ashley's Sports Direct (LON:SPD) have agreed to purchase a 25.75 percent stake in Game Digital (LON:GMD).

Investors piled into struggling retailer Game today after Mike Ashley's spending spree on high street investments continued.

Ashley, who owns 54% of Sports Direct, has barely been out of the headlines in the past week due to a legal spat that has seen him confess to be being a "power drinker" alongside reports of him throwing up in the fireplace at one meeting held in a pub.

United Kingdom sporting retailer Sports Direct has acquired 44m shares in GAME Digital.

Chief Executive Mike Ashley is now embroiled in a court battle with a former colleague, which saw the exposure of the company's operations and Mr Ashley's un-orthdox management style.

Last year Sports Direct came under fire for its working conditions, amid claims that its Shirebrook warehouse was "closer to that of a Victorian warehouse than that of a modern high street retailer".

This speculation has already boosted Game's share price by 23 per cent to 24.25p, bringing its market value to £33.74 million.

"The strategic play is not likely to have any concern with reference to the console cycle but rather growth in e-sports, Insomnia events and in-store gaming".

It has also been hit by the structural impact of game developers selling their products directly to consumers in order to disintermediate the profit-diluting involvement of third-party retailers.

Game shares rocketed over 11% to 27p following the news.

"The board is pleased.by the initial performance of our new in-store gaming arenas, now trading out of 12 locations under the Belong banner", the company said on June 30. That works out to 25.75% of the GAME group.

About 40% of Game's shares are owned by Elliott Advisors, which engineered the public listing of the company's shares in 2014.

For more on the Game investment, see the statement on the Sports Direct website.