The financial situation of UK videogame retailer GAME continues to be fluid. After it was revealed on Friday that GAME was furiously raising cash or go into administration, reports have come in that the chain has put itself up for sale. The company’s situation has been described as ”the brink of collapse.”
According to the London Sunday Times, leading videogame US retailer GameStop is interested in purchasing the Spanish arm of the retail chain, but if GAME wants to sell its British arm, it may have to go through administration. This could be repeated by the French and Australian branches of the company as well.
The Sunday Times also reports that GAME’s share price has plunged to 3.5p. Its market value is now just over £15M.
Being acquired by GameStop would reinvigorate the chain, since GameStop is not only healthy, with no debt whatsoever, it also owns the world’s largest gaming magazine, Game Informer, and has successfully invested in digital distribution with Impulse, and has acquired major streaming services such as flash online games host Kongregate and streaming specialists Spawn Labs.
We’ll stay on this story as it develops.
