Game in offer talks
Video games retailer receives approach
Game has confirmed that it has received an approach from a potential buyer.
The 400 store group, Europe’s leading specialist video games retailer, issued a statement to the Stock Market in response to movements in its share price.
It confirmed “it is in discussions which may or may not lead to an offer for the company,” with a further announcement to be made “as appropriate”
Specialist games retailers have generally struggled in the face of increasing competition from supermarkets, music and general merchandise retailers, as well as online retailers. The long wait for new major console launches from Sony, Microsoft and Nintendo has also hurt the market.
In January, Game said that full year like-for-likes would be down. In the 49 weeks to January 8, total group sales were down by 4.8 per cent, with like-for-likes down 12.1 per cent.
Game itself was this month reported to have withdrawn from discussions of a takeover of Gadget Shop. Rival Gamestation was acquired by Blockbuster in 2002, and analyst Iain McDonald of Numis said a potential US buyer for Game was a possibility. He said: “Gamestop, for example, which was demerged from Barnes
and Noble last year and already has a small chain of stores in Ireland. Not only does Game give exposure to the UK, but also Scandinavia, France and Spain. If a US-player were looking at a move into Europe, then Game would be the obvious candidate.”
