GAME approached by multiple buyers

 

According to MCV, GAME has been approached by US retail giant Walmart who is interested in taking on the troubled retailer.  This would potentially be a better result than being acquired by Hilco; a retail strategist and Comet's parent company OpCapita, as they would likely keep the company running and streamline its operation rather than dismantling and rebuilding it from the ground up.

 

But it doesn't stop there.  Blushore Global Equity has also acquired an eight percent stake in the retailer and stating that the it was an excellent investment opportunity.

 

“We purchase shares in companies that we believe are undervalued – we've been watching GAME for around a year,” Blueshore's Harsha Gowda told MCV. “There's a lot of excitement now about a possible acquisition but that really wasn't the reason we invested.

 

“The fact is that GAME has a very viable long-term business model for the next five to ten years. 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.”  

With multiple potential buyers, it seems EA's John Riccitiello may have been wrong to predict the retailers imminent closure. Or he could have been talking about another retail partner…