GameStop rallied Thursday after the company announced its intention to elect activist-investor Ryan Cohen as chairman of the board, but quickly cut its profits.
The video game retailer has also appointed five more people to the board, including CEO Larry Cheng and Kraft Heinz Senior Vice President Yang Xu, as he tries to reinvent himself as an e-commerce force.
GameStop’s board also nominated one of these candidates, Jim Grub, to serve on the strategic planning committee. Grube was the CFO of Chewy, an online pet supplies store founded by Cohen.
Voting for candidates to the board of directors will take place at the company’s annual shareholders meeting on June 9, the company said in a statement ahead of the markets opening.
In recent months, Cohen has become an increasingly influential figure at GameStop. The billionaire’s RC Ventures first invested in GameStop in September 2020 and is one of the largest shareholders.
GameStop shares opened about 4% higher but fell quickly. At 10.10 am ET, it fell 0.44% to $ 177.38.
Cohen was first named to the board of directors in January in what analysts have cited as one of the catalysts for the stock surge that caught the attention of the markets earlier in the year.
Since then, he has taken control of the company’s strategy, hiring numerous executives with experience in Internet retailing to put the company back on track.
GameStop said Monday it plans to sell up to 3.5 million shares to raise up to $ 1 billion to fund Cohen’s transformation plans.
Separately, GameStop reported on Monday that global pre-sales for the first nine weeks of fiscal 2021 increased by about 11% over the year-ago period.
More details: Goldman Sachs is targeting 40 stocks whose earnings in 2021 will grow more than Wall Street expects.