Reddit favourite GameStop Corp confirms Ryan Cohen to become chairman
Cohen has been effectively running the video games retailer since he was appointed as head of transformation in January
GameStop Corp (NYSE:GME) is to appoint activist investor and major shareholder Ryan Cohen as its new chairman it confirmed today.
Cohen has been effectively running the video games retailer since he was appointed as head of transformation in January to spearhead the group’s switch online from bricks and mortar shops.
His appointment coincided with a frenzied trading rally as retail investors grouped together on r/wallstreetbets and rebelled against hedge funds shorting the stock, sending the price soaring and causing huge losses for some funds.
Cohen is one of six new directors being put up for election at the company’s annual meeting on 9 June, in what would be effectively a complete overhaul of the management.
Other new board nominees include Larry Cheng from Volition Capital, which was one of the first investors in pet food supplier chewy.com where Cohen made his first fortune. Yang Xu, a senior global finance and treasury VP at Kraft Heinz, is also up for election.
GameStop, which has also seen a stream of new executives appointed recently including three from Amazon in senior online positions, added that in future all directors will be paid in shares.
Earlier this week, GameStop said it would raise US$1bn from an issue of new shares to cash in on the surge of Reddit-fuelled buying interest.
Shares today were changing hands at US$182.51, up 2.5%, and valuing the business at US$12.8bn.
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