Sports Direct buys chunk of GAME

Jeffrey Blue is involved in the dispute

Jeffrey Blue is claiming £14 million in damages

But according to Sky News, Sports Direct International has already bought a 25% stake in GAME Digital and is expected to officially announce the fact in the next few days.

Chief Executive Mike Ashley is now embroiled in a court battle with a former colleague, which saw the exposure of the company's operations and Mr Ashley's un-orthdox management style.

Maybe it is not game over for old school video gaming retailer GAME Digital PLC (LON:GMD).

Power drinker Ashley is not regarded as one of life's natural computer gaming geeks, but he does like taking a stake in struggling retailers, having a bit of form in this regard, such as his investment in Debenhams. With Elliot holding circa 43%, anything more than a strategic stake on Sports Direct's part is clearly contingent on Elliot's position.

Game's shares closed almost 23% higher on Wednesday amid speculation about higher-than-average trading activity. Some analysts see the position building as leverage for deal making.

Shares in the company plunged from 33p to 21p at the end of June on a profit warning, but rose 9.3% this morning to 26.5p as Mike Ashley took a chunky stake.

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Shares in Game Digital are now up 5.15 percent and similarly, shares in Sports Direct ticked up 1.57 percent as of 15.22PM (GMT).

Ashley has been embroiled in a £15 million court case this week in which he is accused of promising to pay the sizeable sum while drunk in a pub, before vomiting in the fireplace.

"It is regarded as highly unconventional for a major listed company to invest in other listed companies", Blue said in his statement.

The company has a market value of just £33.74m following a slump in the shares amid continued trading difficulties, including the recent profit warning.

Mike Ashley has set his sights on Game Digital by purchasing a significant stake in the retailer to add to his high street portfolio.

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