GAME shares rise dramatically - buy out imminent?
UK videogames retailer GAME may be on the brink of administration, but its share prices have suddenly seen a spike. Stock is currently trading at 3.2 pence per share, a rise of over 50 per cent in the last 24 hours. At one point they rose as high as 3.7p per share, a far cry from the 0.5p earlier this week.
Games trade magazine MCV even suggests that, according to analyst chatter, share prices could rise higher - up to 6 pence per share by the end of trading.
The sudden rise could be down to rumour that the ailing company, who have also lost Microsoft and Activision as partners - meaning it won't be stocking products from either - is about to be taken over by a new owner.
Walmart is the latest to be linked with a buy-out, with rumours suggesting that it has offered 12p per share for the entire operation. However, investor Blueshore Global, which holds around 8 per cent of GAME shares, is said not to be keen on the deal, believing that it undervalues the company.
Whatever happens to GAME, publishers believe it is time for change within games retail. Rod Cousens, CEO of Codemasters, is of the opinion that disc sales are still important, but perhaps through online stores rather than high street.
"For many, digital starts with a disc, so a retail presence is still needed. It may be that it is more a case of virtual retail such as Amazon.com. than it is GAME," he told MCV.
Whereas, Darryl Still is of the opinion that part of GAME's demise was brought about by its focus on re-selling pre-owned games. He suggests that whoever takes over should "leave the pre-owned bullshit to eBay and Amazon’s marketplace where it belongs".
Would you be sad to see the demise of the high street store? Or do you favour digital download or online retail? Let us know in the comments below...