GameStop Share Price Rockets Past $300 On Transformation News With Chewy's Ryan Cohen

GameStop's share price is surging again following news that the video game retailer has created a new committee on its board of directors aimed at transforming the company. The stock price is rising higher and faster than it has in a while, zooming past $300 on Wednesday.

GameStop's stock price shot up above $200 on Monday after GameStop announced the formation of a Strategic Planning and Capital Allocation Committee, and now it's gone even higher. This group will "identify initiatives that can further accelerate the company's transformation." GameStop's latest surge isn't isolated, either, as another popular stock, AMC, is seeing substantial gains on Wednesday as well.

Sitting on this committee are three people: Alan Attal, Ryan Cohen, and Kurt Wolf. Cohen is the billionaire pet food executive from Chewy who has called for dramatic changes to GameStop's business model to help turn the ship around. Attal is another longtime Chewy executive, while Wolf is a veteran venture capital manager.

The new committee was actually formed some time ago, but it's only being made public this week. The committee has been responsible for the hiring of GameStop's first-ever chief technology officer and announcing plans to replace GameStop's outgoing CFO, among other things.

Looking ahead, this committee is charged with identifying what GameStop can do to "create enduring value for stockholders."

"It is responsible for evaluating areas that include GameStop's current operational objectives, capital structure and allocation priorities, digital capabilities, organizational footprint, and personnel," GameStop said.

Cohen's pitch to GameStop was dramatic, calling for the scaling down or closure of GameStop's businesses in Australia and Europe and to shut down more stores across the US. Cohen laid out these plans in 2020, before the GameStop stock price hullabaloo, so it remains to be seen what objectives Cohen might be pushing for as part of the new transformation committee. Cohen is the chair of the committee.