Game, Sports Direct announce collaboration, loan agreement
Source - SMW
GAME Digital plc said Monday that it has entered into a collaboration agreement with Sportsdirect.com to rollout Belong and Game retail limited stores.
Game also announced it entered into a loan agreement with Sports Direct for facilities of up to £55 million on an unsecured basis.
As part of the collaboration agreement, Sports Direct acquired a 50% interest in the rights of the Belong intellectual property for cash consideration of £3.2 million, and a 50% profit share of future profits of Belong and associated Venues.
Belong is Game's competitive gaming and esports experience centred around physical 'arenas', bringing both casual and competitive gaming to communities nationwide, in city and town centres and in major shopping centres.
Martyn Gibbs, GAME Digital Chief Executive Officer, said: 'I am delighted that through the Collaboration Agreement we are able to accelerate the implementation of a key element of our transformational strategy to move from a seller of physical products to providing gaming experiences.'
'We look forward to collaborating with Sports Direct to increase the availability and scale of Belong and to capitalise on the increasing overlap between sports and esports fans by bringing this unique experience to a wider consumer base.'
Jon Kempster, Sports Direct's Chief Financial Officer, said: 'We are very happy to partner with Game in building an increased presence in the esports market through the BELONG brand. This is a very good example of building a commercial relationship via our strategic investment approach.'
At 9:05am: (LON:GMD) Game Digital share price was +4.05p at 42.05p