Video game retailing giant Game today announced their wholesale acquisition of UK retail brand Gamestation. The acquisition see's Game receiving full ownership of all 217 Gamestation stores across the UK and Ireland, pushing the company's overall store base to 1,047 outlets worldwide.

The company acquired Gamestation unconditionally from video rental company Blockbuster UK Ltd for £74 million (approx $147 million). This will Blockbuster UK Ltd ceasing connections with the Gamestation brand by the May 31st, but Gamestation stores won't be converted over to the "Game" name, but will instead retain their name, and will continue to focus on its existing primary customer base - tetosterone fueled males and people too stingy to buy games first-hand.

Gamestation reported revenues of £203.5 million ($405 million) and profits (sans taxes) of £2.1 million ($4.2 million) for 2006, and game expects this acquisition to significantly enhance its earnings for the forseeable future but a substantial amount, estimated at around £7 million ($14 million) per annum within two years time if current industry trends remain consistant.

Game chairman Peter Lewis sees this as a beneficial move, but then again, who actually talks negatively in a press release statement?

"We are delighted to bring Gamestation into our portfolio and believe it has a strong future within the group. The Gamestation business is one we have long admired and is complementary to our existing business in terms of both store portfolio and target customer... I am confident that this transaction will add considerable value to Game and its shareholders over the coming years."

Tags : acquisition : game : gamestation : merger : uk

Comments

By: Samuel

On: 11:42 May 2nd, 2007
Offline

If they jack up the prices and turn the store in birmingham into a Game, I'll shoot something.

By: Dragonsoul

On: 09:28 May 14th, 2007
Offline

tetosterone fueled males and people too stingy to buy games first-hand

This ain't the one and the same? :P

I never quite like it when companies are acquired. They usually lose that which is special about them. Companies monopolizing the industry piss me off because they usually stick with profitable and not necessarily creative games.