GameStop Corp. appointed hedge fund billionaire Ryan Cohen as its new chief executive officer, filling a leadership void at the video-game retail chain after losing its second CEO in three years.
(Bloomberg) — GameStop Corp. appointed hedge fund billionaire Ryan Cohen as its new chief executive officer, filling a leadership void at the video-game retail chain after losing its second CEO in three years.
Cohen, who is already chairman, will start in the role immediately and won’t receive compensation, though he’ll continue to engage in business pursuits outside of GameStop, the company said in a statement on Thursday.
GameStop gained notoriety as a “meme stock” when investors on Reddit’s WallStreetBets forum helped drive huge swings in the stock, sending it up more than 1,600% in January 2021. Since then, shares have come down, and the retailer has been struggling with management turnover and customers’ continued shift away from buying games in store.
Read More: How WallStreetBets Pushed GameStop Shares to the Moon
Shares rose about 9% in premarket trading before New York exchanges opened on Thursday. The company has a market value of roughly $5.4 billion, less than a quarter of what it was worth at the height of its rally in 2021.
Cohen, founder of online pet food retailer Chewy, acquired a stake in the company in 2020 and has overseen a number of executive shakeups. The company ousted its previous CEO Matt Furlong in June, after just two years in the role. Chief Financial Officer Diana Saadeh-Jajeh also resigned, effective from August.
(Updates with additional details throughout)
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