GAME Looking to Float on Stock Market, Fool Stupid People

UK retailer GAME have today announced their intentions to float on the stock market, meaning that just under two years after the company nearly disappeared completely, they’re again looking to become publicly funded. This is big news for them, or at least that’s how they’re trying to frame it. In reality, they’re trying to cash in on new-gen excitement while the time is ripe.

From an email sent out by GAME today:

Great news from GAME! 

Today we announced our intention to float on the stock market. This would be a fantastic achievement for the company and the support of our loyal customers has been at the heart of our success. Thank you. 

For everyone at GAME it’s still business as usual and you will still be able to take advantage of all our great services and products in-store and online. 

But wait… There’s more! 

We recognise how lucky we are to have such an amazing customer community and we want to say “thank you”. If our floatation is successful, we intend to reward 20,000 of our loyal customers with virtual loyalty shares to the value of £100. 18,000 of those lucky customers have already been selected from our most loyal Reward customers. That means there are still 2,000 lucky customers out there who may be chosen to receive virtual loyalty shares. We’re giving every customer who purchases any product in any of our stores or through our website between 19th May 2014 and 5th June 2014 the chance to be chosen as one of the lucky 2,000. If our floatation is successful, we will hold a prize draw and the 2,000 winners from this draw will be offered a number of free virtual loyalty shares in GAME – could it be you?! 

To find out more, and see the terms and conditions, please visit our website. There are no processing fees required and should your name be drawn out we will be in touch with you in June. 

Thank you for shopping with us and we hope that you will continue to do so as we take GAME into the future. 

The Team at GAME

It’d be nice to think that a brick and mortar company that could have easily disappeared is suddenly in a position to just give out shares, but the reality isn’t quite that perfect. GAME, like much of the retail sector, isn’t rapidly recovering from the problems of shifting stock during an economic downturn. Instead, they’re hoping people with little interest in gaming (or too much interest) will invest after a decent few quarters brought on by next-gen devices. The long-term prospects are still up in the air and it’s in no way an indication of how GAME are recovering – but they want you to think it is.

On the other hand, I’m not sure anybody would turn down the chance to be given what is effectively free cash. Just sell as quickly as you’re allowed – this is a company with a history of going down the toilet.