GameStop’s top-ranked overhaul will continue with the announcement of CEO George Sherman’s resignation at the end of July.
In less than two weeks, the company in Grapevine, Texas, announced that it has nominated Chewy founder Ryan Cohen as chairman of the board of directors, a major investor in terrible video game retailers. GameStop’s share price rose more than 7% in the morning trading to $ 166.05.
Cohen has bought a huge stake in the company to drive digital transformation. GameStop is suffering as more gamers turn to digital downloads rather than the discs that the chain sells on the shelves.
Cohen has two former colleagues on the board.
Their arrival coincided with the January surge in GameStop stocks in a strange market phenomenon that plunged small investors who banded online against major institutional investors who were shorting stocks. ..
Gamestop’s share price is currently around $ 170, up 720% this year. At the end of the fierce trading in January, stocks were close to $ 500 each.
In a regulatory filing last month, GameStop said it hired an executive headhunter to evaluate the company’s leadership, and its directors spoke with potential candidates in the gaming, e-commerce and technology sectors.
Earlier this month, GameStop announced it would sell up to 3.5 million shares, but prices are still rising significantly. Shares will be sold through the “At the Market” offering. This allows a company to put its stock on the market for a period of time.
The·Technology shifts have allowed gamers to spend money online instead of at the GameStop store, allowing the company to repay large amounts of accumulated debt.
https://www.cbsnews.com/news/gamestop-ceo-george-sherman-exit-ryan-cohen-digital-push/ GameStop CEO George Sherman resigns as video game retailer shifts to digital