US Markets
Thursday, September 28th, 2023 2:04 pm EDT
Key Points
- Ryan Cohen was appointed the company’s CEO, president and chairman and won’t receive compensation for his work.
- The move comes more than three months after GameStop fired then-CEO Matthew Furlong.
- Shares of GameStop surged after the announcement.
GameStop has announced that billionaire activist investor Ryan Cohen will take over as CEO, chairman, and president without receiving a salary. This move led to a more than 6% increase in the company’s premarket trading shares. The unanimous board decision, with Cohen abstaining, came after he had previously held the role of executive chairman. This shift follows GameStop’s firing of CEO Matthew Furlong three months prior, appointing Cohen as executive chairman and Mark Robinson as “principal executive officer.” Furlong’s dismissal occurred shortly after the company reported its first quarterly profit in two years under his leadership. CFO Diana Saadeh-Jajeh also resigned subsequently.
Ryan Cohen, known for founding pet food retailer Chewy and his involvement with meme stocks, acquired a stake in GameStop in 2020 and joined the board in 2021 during the meme stock phenomenon’s peak. At that time, his firm RC Ventures became GameStop’s largest shareholder with a 12.09% stake. Despite Cohen’s involvement, the company has struggled to show significant signs of a turnaround, with some exceptions. GameStop recently reported its second-quarter financial results, revealing a narrower loss compared to the previous year and a slight increase in revenue.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/09/28/gamestop-names-ryan-cohen-as-ceo-effective-immediately.html
