GameStop To Take Over GameStation?

Speculation is rife that, following the referral of GAME's acquisition of GameStation to the Competition Commission, U.S. giant GameStop could step in and buy up the company.

“It is a completed deal, so ultimately we can turn around and reverse the whole thing,” Competition Commission spokesperson Rory Taylor told MCV, “It would mean that GAME would have to sell Gamestation lock, stock and barrel to a competing retailer.”

GAME could, in fact, be forced to accept a bid from GameStop. Taylor added, “The company handles the sale itself, but the buyer has to be approved by the Competition Commission as a viable competitor. If they don’t find a buyer themselves, after a certain time an independent trustee can be appointed to carry out the sale for them.”

GAME, however, remains optimistic - even bullish - about the situation. “We remain confident, and are not contemplating that the deal won’t be cleared”, said a spokesperson. “We have always been very clear about our international growth strategy, and this has not changed. We are focused on integrating our recent acquisitions, coupled with organic growth, in both Europe and Australia.”

Naturally, games industry analyst Michael Pachter of Wedbush Morgan Securities had something to say on the subject. “If the deal is blocked, I’m certain that GameStop would be interested. I think that GAME benefits immensely from keeping GameStop out of the UK”, said Pachter.

“I think that GameStop would give GAME very stiff competition if it were to enter the UK market, and believe that consumers would benefit from such a move. GameStop would certainly offer better trade-in values and a more competitive used game business,” he added.

SPOnG spoke to Michael Spilligan (Senior Entertainment analyst at Nomoru Wahrheit Kennis) on the subject. He told us, "I know Michael's work and I respect it. I agree with him that GameStop might be interested in buying GameStation because, as a retailer, it is interested in maximising profits by taking money in exchange for goods. That is, however, as Michael says, in the event that the GAME/GameStation deal is blocked. In the event that the deal is not blocked, then I think that GameStop might still be interested in making money retailing games but I imagine that they won't be interested in buying a company that they can't - legally - buy because it is owned by another company in another country.”

Analysts aside, however, the fact is that thus far GameStop has made no indication that it intends to buy GameStation should the GAME deal not go through.

^{Source: MCV}