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| Version 2 | Version 3 |
|---|---|
| Mike Ashley's Sports Direct buys 26% stake in Game Digital | Mike Ashley's Sports Direct buys 26% stake in Game Digital |
| (about 5 hours later) | |
| Mike Ashley's Sports Direct has bought a quarter stake in struggling computer games retailer Game Digital, adding to his list of High Street holdings. | Mike Ashley's Sports Direct has bought a quarter stake in struggling computer games retailer Game Digital, adding to his list of High Street holdings. |
| Game said Sports Direct had bought 44 million shares, a 25.75% stake, adding that it looked forward to "working collaboratively" with the company. | Game said Sports Direct had bought 44 million shares, a 25.75% stake, adding that it looked forward to "working collaboratively" with the company. |
| Last month, Game issued a profit warning, blaming poor supplies of the Nintendo Switch console. | Last month, Game issued a profit warning, blaming poor supplies of the Nintendo Switch console. |
| Mr Ashley has stakes in Debenhams, French Connection and Findel. | Mr Ashley has stakes in Debenhams, French Connection and Findel. |
| Findel is a mulit-category online retailer. | Findel is a mulit-category online retailer. |
| The Newcastle United owner has recently been involved in a colourful court case with an investment banker and last year was criticised for the running of a Sports Direct warehouse in Derbyshire. | The Newcastle United owner has recently been involved in a colourful court case with an investment banker and last year was criticised for the running of a Sports Direct warehouse in Derbyshire. |
| In a statement Game said: "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. | In a statement Game said: "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. |
| "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 e-sports markets in which it operates." | "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 e-sports markets in which it operates." |
| Scathing view | Scathing view |
| Adam Tomlinson, analyst at Liberum, said: "We see a number of reasons how Game and Sports Direct can gain from a closer working relationship but it is surely the similar customer demographics that must be the key draw card here. | Adam Tomlinson, analyst at Liberum, said: "We see a number of reasons how Game and Sports Direct can gain from a closer working relationship but it is surely the similar customer demographics that must be the key draw card here. |
| Mr Tomlinson added that the Insomnia Festivals run by Game, attract thousands of enthusiasts and could also present a merchandising opportunity for Sports Direct. | Mr Tomlinson added that the Insomnia Festivals run by Game, attract thousands of enthusiasts and could also present a merchandising opportunity for Sports Direct. |
| He said there had been a rapid growth in e-sports with around 6.5 million participants in the UK. | He said there had been a rapid growth in e-sports with around 6.5 million participants in the UK. |
| Nick Bubb, retail analyst was more scathing in his assessment and does not believe the purchase indicates a particular strategy: "Well, the best that can be said about the latest bizarre investment by Sports Direct is that the stake in Game Digital only cost the company about £10m, such is the low level to which the Game share price has sunk. | Nick Bubb, retail analyst was more scathing in his assessment and does not believe the purchase indicates a particular strategy: "Well, the best that can be said about the latest bizarre investment by Sports Direct is that the stake in Game Digital only cost the company about £10m, such is the low level to which the Game share price has sunk. |
| "How much Mike Ashley knows about the esports market remains to be seen," he added. | "How much Mike Ashley knows about the esports market remains to be seen," he added. |
| Shares in Game Digital jumped 15% on news of Sports Direct's purchase ,before shedding most of that to end up 3%. |