GameStop has announced that billionaire activist investor Ryan Cohen will now serve as the company’s CEO. Cohen was already GameStop’s executive chairman and joined the board in 2021. The news comes more than three months after GameStop fired former CEO Matthew Furlong.
Upon the announcement, shares of GameStop surged nearly 10% in premarket trading. This development is significant considering GameStop’s involvement in the meme stock craze that took place in 2020 and 2021.
It is worth noting that Cohen will not receive any compensation for his new role as CEO, president, and executive chairman of GameStop. This move is part of the company’s ongoing restructuring efforts and strategic decision-making process.
Ryan Cohen is best known for founding the popular pet food retailer, Chewy. He earned the nickname the “king” of meme stocks due to his involvement with GameStop during the height of the meme phenomenon. In 2020, Cohen purchased a stake in GameStop, which eventually led to his appointment as executive chairman.
Although GameStop has faced significant challenges in recent years, it did report some positive results in its second-quarter financial report. The company posted a narrower loss compared to the previous year and saw a slight increase in revenue. These results indicate that GameStop may be making progress towards a potential turnaround.
The appointment of Ryan Cohen as CEO reflects GameStop’s commitment to adapting to the evolving retail landscape and capitalizing on new opportunities. Cohen’s expertise and experience in the e-commerce sector, particularly with Chewy, will likely be instrumental in driving strategic growth and innovation for GameStop.
This announcement comes as GameStop continues to navigate a changing market and consumer behavior, with the rise of digital gaming and online retail impacting the traditional brick-and-mortar sales model. GameStop will need to leverage its strengths, such as its loyal customer base and strong brand recognition, to stay competitive in the evolving gaming industry.
Overall, the appointment of Ryan Cohen as CEO showcases GameStop’s dedication to revitalizing its business strategy and positioning itself for long-term success. With a new leader at the helm, GameStop aims to leverage its unique position in the gaming industry and capitalize on emerging trends to drive growth and profitability in the years to come.