The United States (US) video game, electronics and wireless service retailer GameStop announced that CEO George Sherman will step down the throne at the end of July.
The company said Sherman could resign earlier if a replacement was found, the announcement was made on Monday (19/4) local time.
The news comes as no surprise as Ryan Cohen, co-founder and former CEO of Chewy, a pet products supplier, is the controlling company.
Cohen, through the company RC Ventures, owns nearly 13 percent of the company and will become chairman of GameStop at the AGM in June.
GameStop Shares Rose 6.3%
In response to the news, GameStop (GME) shares skyrocketed 6.3%.
Sherman, a veteran retail executive who has only served at Gamestop since April 2019, inherited a tough job when he took over the company.
“I am very proud of what we have achieved at GameStop in the last two years, including the hardships during the pandemic. We have helped provide stability and strength to the company,” Sherman said in a statement. .
Sherman took office at a time when sales of console games dropped dramatically and people started downloading games and stopped buying at physical stores.
Shortly after taking office, he announced the closure of 200 GameStop stores.
“GameStop appreciates the valuable leadership George has provided during his tenure. He took many decisive steps to stabilize the business during difficult times. The company is much stronger today than it was when he joined,” Cohen said in a statement.
Cohen, who entered the company at the end of 2020, excites investors. Investors on the WallStreetBets forum on Reddit believe Cohen will take GameStop to the top.
GameStop Shares Has Boomed Wall Street
Previously, GameStop shares became the byword on US exchanges after becoming a battleground for the retail investor army with the big wall Street bookies.
A group of retail investors who have joined the WallStreetBets forum through the social network widely used in the US, Reddit, are trying to fight the short selling of big bookies.
In the WallStreetBets forum, the retail investors bought up GameStop shares and promised not to give up their ownership. Thanks to the persistence of the retail investors who are members of WallStreetBets, GameStop shares continued to rise, instead of falling as stockbrokers hoped.
Read now: GameStop Stocks Skyrocket Again, Is It Reddit Army?
