GameStop fires CEO, names Ryan Cohen executive chairman; shares plummet
Last edited Wed Jun 7, 2023, 07:27 PM - Edit history (1)
Source: CNBC
GameStop fired its CEO Matthew Furlong and appointed its board chairman Ryan Cohen as executive chairman effective immediately, the company said Wednesday.
Shares of GameStop dropped more than 20% in extended trading after the video game retailer announced the termination. It released the news on the same day it reported its revenue dropped and its loss narrowed in its fiscal first quarter compared to the year-ago period. The company didn’t provide a reason for the firing but noted the change in its quarterly securities filing.
“We believe the combination of these efforts to stabilize and optimize our core business and achieve sustained profitability while also focusing on capital allocation under Mr. Cohen’s leadership will further unlock long-term value creation for our stockholders,” the filing states.
Cohen took a stake in GameStop in 2020 and in January 2021, he and two other former Chewy executives were named to the retailer’s board as part of an agreement with the company’s management. His investment firm RC Ventures currently has an 11.9% stake in GameStop, according to filings.
Read more: https://www.cnbc.com/2023/06/07/gamestop-fires-ceo-names-ryan-cohen-executive-chairman.html
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The company didn't provide a reason for the firing. It said Cohen will be in charge of capital allocation and overseeing management. In a cryptic tweet posted about a half an hour after Furlong's firing was announced, Cohen wrote: "Not for long." The activist investor and Chewy founder is known for saying very little publicly and making vague statements online. The decision to part ways with Furlong comes just months after GameStop reported its first quarterly profit in two years while he was at the helm.
The announcement coincided with GameStop's fiscal first quarter earnings release. In the three months that ended April 29, GameStop reported revenue of $1.24 billion, down from $1.38 billion in the year-ago period. It reported a net loss of $50.5 million, or a loss of 17 cents per share, compared to a loss of $157.9 million, or 52 cents a share, a year earlier.
The company incurred $14.5 million in transition costs related to its restructuring efforts in Europe. It noted it will take more transition charges in the current quarter.
GameStop fired its CEO Matthew Furlong and appointed its board chairman Ryan Cohen as executive chairman effective immediately, the company announced Wednesday.
The company didn't provide a reason for the termination. It said Cohen will be in charge of capital allocation and overseeing management. He previously served as board chairman.
The decision to part ways with Furlong comes just months after GameStop reported its first quarterly profit in two years while he was at the helm. Shares of GameStop dropped more than 17% in extended trading after news of the termination was released.
In GameStop's fiscal first quarter that ended April 29, GameStop reported revenue of $1.24 billion, down from $1.38 billion in the year ago period. It reported a net loss of $50.5 million, or a loss per share of 17 cents, compared to a loss of $157.9 million, or 52 cents a share, a year earlier.
This is breaking news. Please check back for updates.
The company didn't provide a reason for the termination. It comes just months after Gamestop reported its first quarterly profit in two years with Furlong at the helm.
In its fiscal first quarter that ended April 29, Gamestop reported revenue of $1.24 billion, down from $1.38 billion in the year ago period. It reported a net loss of $50.5 million, or a loss per share of 17 cents, compared to a loss of $157.9 million, or 52 cents a share, a year earlier.
This is breaking news. Please check back for updates.
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