GameStop Names Chewy Co-Founder Ryan Cohen As New President

GameStop (GME)said Thursday he plans to appoint Cohen, whose investment firm RC Ventures owns an almost 13% stake in the company, to be his next chairman after GameStop’s annual meeting on June 9.

The company also said on Thursday that following the annual meeting, all directors on the board will be paid fully in shares – which will likely motivate them to take action to raise the price further. Directors will also see their compensation reduced by almost 30% compared to the previous year.

GameStop shares rose nearly 850% in 2021 – but are currently trading more than 60% below their peak at the end of January.

The Bulls hope Cohen, who helped build an online pet supply store Soft (ALL) as a digital commerce giant, will also be able to harness its e-commerce magic with GameStop.

GameStop appointed Cohen to head a strategic planning and capital allocation committee in early March. As part of this role, Cohen was to strengthen GameStop’s e-commerce operations.

The company has already taken several steps to do this, hiring several executives from Chewy and Amazon (AMZN) to support the transformation of the company.

GameStop, like many retailers, has been hit hard by the Covid-19 pandemic. Sales in its last quarter were down 3% from a year ago and below Wall Street expectations.

But GameStop was struggling even before the coronavirus, largely due to the shift to more online and mobile games that can be downloaded directly to phones, consoles, PCs and tablets.

Enter Cohen, who first took a stake in GameStop in September 2020. His influence with the retailer is paying off. Although overall sales declined during the 2020 holiday period, online sales more than doubled. E-commerce now accounts for more than a third of total revenue, down from just 12% in the fourth quarter of 2019.

READ  SE Cupp: We may be living in the dumbest times

Leave a Reply

Your email address will not be published. Required fields are marked *