Mike Ashley's Sports Direct International is set to make a takeover offer for retailer Game Digital after increasing its stake to 38%.
Sports Direct will pay 30p a share for Game Digital, valuing the group at around £51.9 million, it said.
The retail tycoon's high street empire was already Game's largest investor and has been a shareholder in the group since since July 2017.
Sports Direct said: "The retail and gaming sectors are fast moving and currently subject to challenging conditions.
"Sports Direct does not believe that, as a standalone business, Game is able to weather the pressures that it is facing.
"Sports Direct believes that the offer, in providing Game with the wider benefit of Sports Direct's operating and other experience and increased support, will secure Game's future and allow it to navigate these pressures."
