Pet Food Billionaire Joins GameStop's Board Of Directors
GameStop's biggest private investor has joined its board to try and save the flagging retailer.
Ryan Cohen, a billionaire investor who owns a significant 12% share in GameStop stock, has joined the company's board of directors, bringing with him two other new board members who share a past at Cohen's pet food company Chewy. With Cohen having previously called for big changes at the company from his position as a shareholder, his appointment to the board is likely to shake things up at the games retailer.
Last November, Cohen raised concerns with GameStop's board of directors as a 10% shareholder, calling on the company to change its business practices before it saw further decline. His recommendations included closing stores, scaling down businesses in Europe and Australia, and focus more on e-commerce. At the time, a GameStop spokesperson said that Cohen had declined multiple invitations to join the board of directors, with Cohen stating "RC Ventures is not interested in receiving a lone seat on GameStop's ten-member Board."
Now it seems they've come to a compromise, with Alan Attal and Jim Grube, both of whom worked with Cohen at pet food company Chewy, joining Cohen as part of RC Ventures' voice on the board. With all three having a strong background in e-commerce, it's likely the company will plan to focus more of its efforts online, and will shutter low-performing physical stores.
"We appreciate the constructive dialogue we have had with Ryan over the past several months," GameStop CEO George Sherman said in a press release. "Together, we have reached an outcome that is in the best interest of all stockholders and can enable GameStop to accelerate efforts to deliver enhanced value for the Company."
GameStop has struggled to keep its business afloat in recent years, as games sales have moved increasingly online. While the pandemic saw growth across the board for the games industry, including for GameStop, the retailer's business didn't pick up as much as it should have, according to Cohen's previous letter to the board. While it should have seen a boost in business thanks to next-gen consoles, those releases were unfortunately soured due to ongoing supply issues.
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