GameStop’s billionaire backer Cohen replaces ousted CEO
GameStop Corp. appointed hedge fund billionaire Ryan Cohen as its new CEO, filling a leadership void at the video-game retail chain after losing its second CEO in three years.
Cohen, who is already chairman, will start in the role immediately and won’t receive compensation, though he’ll continue to engage in business pursuits outside of GameStop, the company said in a statement Thursday.
GameStop gained notoriety as a “meme stock” when investors on Reddit’s WallStreetBets forum helped drive huge swings in the stock, sending it up more than 1,600% in January 2021. Since then, shares have come down, and the retailer has been struggling with management turnover and customers’ continued shift away from buying games in-store.
Shares rose about 9% in premarket trading before New York exchanges opened Thursday. The company has a market value of roughly $5.4 billion, less than a quarter of what it was worth at the height of its rally in 2021.
Cohen, founder of online pet food retailer Chewy, acquired a stake in the company in 2020 and has overseen a number of executive shakeups. The company ousted its previous CEO, Matt Furlong, in June, after just two years in the role. CFO Diana Saadeh-Jajeh also resigned, effective in August.