Businessman and owner of Newcastle United Football Club and retailer Sports Direct, Mike Ashley, has purchased 44 million shares into UK video games retailer GAME.
The company has been struggling with its share price following a profit forecast warning published last week and was valued at £33.7 million. Earlier this morning, Sports Direct bought the shares at 19.75p and the news has upped the share price to a peak of 28p.
“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,” a spokesperson for GAME said which our sister site, MCV, reported.
“GAME is pleased that the strategic value of the group has been recognised by Sports Direct through this acquisition of a 25.75% stake. 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 esports markets in which it operates.”
Sports Direct owner, Ashley, is reportedly worth £2bn and also has interests in retailers French Connection, Debenhams and Agent Provocateur. Recently, Ashley was involved in a court case where he described himself as a ‘power drinker’ following non payment of bet to a banker. Sports Direct has also been heavily criticised for working conditions in its warehouses over the past 24 months.