With a firm offer from OpCapita to acquire GAME Group understood to be on the table, one analyst has questioned the motivations behind the potential deal.
Highlighting the fact that HMV is “lucky to have decent assets to sell” and “suppliers that have rallied around them”, independent analyst Nick Bubb said of GAME:
“It is not so lucky, in that it has no valuable assets to sell and has little supplier support, and it is not obvious what OpCapital think they can bring to the party."
The assessment is in stark contrast to that offered to MCV by new GAME investor Blueshore Global last night.
“The fact is that GAME has a very viable long-term business model for the next five to ten years,” Blueshore’s Harsha Gowda explained. “It just needs to ride out the current downturn in the console cycle.
“GAME has a huge number of assets. It even owns its Basingstoke HQ which itself is extremely valuable. The market isn't considering these factors properly. Even if a bidder secured a purchase of the entire chain for £1 we still see the opportunity to make a significant profit. And should administration happen there's still money to be made at the current share price.
“GAME stock is certainly worth far more than it's currently valued at.”
Some analysts believe that GAME stock, which continues to rise this morning, could reach as much as 6p by the end of trading today.