GameStop appoints Ryan Cohen as Chief Executive Officer.
New Leadership at GameStop: Ryan Cohen Takes the Helm
GameStop announced on Thursday that Ryan Cohen, the billionaire activist investor, has taken over as the company's president, CEO, and chairman. No compensation will be paid to Cohen for these roles, according to a two-sentence statement from the company.
Cohen, who founded Chewy, had previously declined to receive compensation when serving as a non-employee director. He bought a financial stake in GameStop in 2020 and became board chairman in June 2021.
Insight into Cohen's Background
Ryan Cohen, a Canadian entrepreneur, co-founded Chewy, an online pet supplies store, which was later acquired by PetSmart for $3.35 billion. He has gained prominence due to his investments and roles in retail companies like GameStop and Bed Bath & Beyond.
Board Changes and GameStop's New Leadership
Cohen's appointment as CEO comes after the board fired CEO Matt Furlong without cause in June. Furlong resigned as a company director, reducing the board from six members to five. As executive chairman, Cohen replaced Furlong, with Mark Robinson staying on as general counsel and secretary. Cohen will also take over the role of principal executive officer from Robinson.
The chief financial officer position has also turned over recently, with Diana Saadeh-Jajeh's departure in August. No reason was given for Saadeh-Jajeh's departure, but the company stated it was not related to any disagreements on operational or policy matters.
GameStop's Financial Performance
In March, GameStop posted its first quarterly profit in about two years. In the second quarter, the company reported net sales of about $1.16 billion, up from $1.14 billion year over year. Despite these gains, the company reported a much smaller net loss of $2.8 million for the quarter ending July 29, compared to a nearly $109 million net loss a year earlier.
Ending the Venture into Crypto Wallets and Future Plans
The company recently announced it's ending its venture into crypto wallets due to an uncertain regulatory environment. Despite market challenges and bearish analyst sentiment, GameStop is planning strategic bitcoin acquisitions, having raised $1.5 billion through a private offering of convertible senior notes.*
GameStop did not respond to Retail Dive's request for further comment about Cohen's new leadership role or its financial outlook ahead of the holiday season.
Controversies and Investigations
Cohen's interest in Bed Bath & Beyond, another retail company where he once held a significant stake, has sparked controversy and accusations of insider trading. He sold his stake, generating profits but also triggering a lawsuit seeking $47.2 million in trading profits. Cohen is also under investigation by the SEC over his dealings with Bed Bath & Beyond.*
Bed Bath & Beyond filed for Chapter 11 bankruptcy earlier this year, with online retailer Overstock buying elements of the company's intellectual property and rebranding to take advantage of Bed Bath & Beyond's name recognition.
Ryan Cohen continues to make waves in the retail industry with his strategic investments and transformative leadership.
- Cohen, the CEO of GameStop, is the founder of Chewy, an online pet supplies store that was acquired for $3.35 billion.
- As the new executive chairman, Cohen replaced Matt Furlong, who was fired from his CEO position without cause in June.
- The company's financial performance has shown improvement, with GameStop posting its first quarterly profit in about two years in March.
- GameStop announced it's ending its venture into crypto wallets due to an uncertain regulatory environment, but is planning strategic bitcoin acquisitions.
- Ryan Cohen's interest in Bed Bath & Beyond has sparked controversy and accusations of insider trading, with the SEC investigating his dealings with the company.
- Despite the controversies, Cohen continues to make waves in the retail industry with his strategic investments and transformative leadership.
