Sports Direct will acquire Game in £52 million takeover
High street shop Game could ultimately be absorbed into House of Fraser, following its acceptance of Sports Direct's £52 million takeover bid.
In 2017, Sports Direct bought 26% of Game Digital's shares - later increasing their stake to 38.49% earlier in June 2019. This meant that they were eligible to launch a takeover bid.
Earlier in the month, Sports Direct said: "The retail and gaming sectors are fast moving and currently subject to challenging conditions. Sports Direct does not believe that, as a standalone business, Game is able to weather the pressures that it is facing."
As part of the successful bid, Sports Direct will come into control of the 540 Game shops across Britain and Spain - and need to make the final decision over whether the sites need to be integrated into Sports Direct's existing spaces, including House of Fraser stores. There might also be a cutting or relocating of existing Game staff and management.
Regarding accepting Sports Direct's offer, Game said: “In coming to this recommendation, the board has considered the growing size of Sports Direct’s shareholding in the Group and the reliance Game has on Sports Direct for supporting its future growth prospects combined with the ongoing industry headwinds, current negative retail market outlook and the likely elongated current console lifecycle which are expected to impact the future financial performance of the group."