GameStop shares jump after plans to name Ryan Cohen as chairman

GameStop shares jump after plans to name Ryan Cohen as chairman

GameStop announced Chewy co-founder Ryan Cohen will become its chairman.

GameStop announced Thursday that the Chewy co-founder Ryan Cohen will become its chairman following the company’s annual shareholder meeting, which is scheduled for June 9.

Mr. Cohen, who joined the board earlier this year with two former colleagues, had urged the company to focus on e-commerce and reduce store count, among other initiatives. The company is now working to transform its decades-old bricks-and-mortar business to become more technology-centric.

GameStop announced Thursday that the Chewy co-founder Ryan Cohen will become its chairman

The retailer’s shares jumped more than 4% in premarket trading, putting the stock on track to snap a three-day losing streak. Shares have given up some of their sky-high gains since a surge in late January, but are still up more than 870% this year, giving the company a market value of $12.8 billion.

GameStop also announced two new candidates for board seats Thursday — including Larry Cheng, whose firm Volition Capital was the first investor in Chewy, Cohen’s now-profitable online pet food retailer.

GameStop shares jump after plans to name Ryan Cohen as chairman

Cohen’s ascension to the chairman’s seat follows GameStop’s announcement last month that he was leading a special board committee tasked with transforming the company into an e-commerce business.

That was the focus of a November letter Cohen sent GameStop’s board, which said the chain had failed to keep up with the industry’s “transition from physical hardware to digital streaming.”

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