In a stunning move that has left the business world buzzing, GameStop announced this Thursday that Ryan Cohen will serve as the company’s CEO, Chairman, and President, effective immediately. Remarkably, Cohen will not be drawing a salary for his multiple roles.
Following the news, GameStop's stock price soared, experiencing nearly a 10% uptick in pre-market trading. As of the latest stock market update, the shares were trading at a high, with an increase of 1.45 points or an 8.45% rise, under the ticker $GME.
The decision to appoint Cohen was unanimous, with Cohen himself abstaining from the vote. Previously serving as the executive chairman, he will relinquish that title as he takes on these new responsibilities. The eye-catching aspect of this appointment is Cohen's choice not to receive any financial compensation for his work, as confirmed by a company press release.
This move comes just over three months after GameStop severed its ties with former CEO Matthew Furlong. While the reason for Furlong's departure remains undisclosed, he left the company shortly after it announced its first quarterly profit in two years. Soon after Furlong's exit, CFO Diana Saadeh-Jajeh also stepped down from her role.
Mark Robinson, who had taken on the responsibilities of "principal executive officer" and general manager in addition to his original role as general counsel and secretary, will now revert back to his original duties. Cohen will assume the role of principal executive officer from Robinson.
Who is Ryan Cohen?
For those unfamiliar, Cohen is the entrepreneur behind the successful online pet retailer, Chewy. He gained further prominence as a significant shareholder of GameStop and has been often referred to as the "king" of meme stocks. His firm, RC Ventures, is the largest shareholder in GameStop, holding a 12.09% stake as of late June.
Despite some challenges, GameStop showed slight improvements in its second-quarter financial results, narrowing its losses and increasing its revenue. While it is still early days, the appointment of Cohen, a well-regarded business leader, could signal a turning point for the embattled retailer. Only time will tell if this change in leadership will be the catalyst that GameStop needs for a true corporate renaissance.
Full press release info is here.
Will GameStop turn things around once again? Time will tell. One thing is for sure - Cohen is the type of person that will work his ass off to ensure he's done everything he can.