Impact

WallStreetBets

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<p class="has-drop-cap">Ryan Cohen, founder of Chewy and famous activist investor, has been <a aria-label="named GameStop’s new CEO (opens in a new tab)" href="https://gamestop.gcs-web.com/news-releases/news-release-details/gamestop-announces-election-ryan-cohen-chief-executive-officer" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">named GameStop’s new CEO</a> on Wednesday. The move comes three months after the company <a href="https://tokenist.com/gamestop-down-19-after-firing-ceo-abruptly-cancelling-earnings-call/" rel="dofollow" class="deco-link">dismissed former CEO Matt Furlong</a> to ramp up turnaround efforts.&nbsp;GameStop’s shares soared more than 7% in premarket trading on the announcement. </p> 
<h3 id="cohen-to-relinquish-executive-chairman-role">Cohen to Relinquish Executive Chairman Role&nbsp;</h3> 
<p>Shares of GameStop spiked 7.1% in Thursday’s premarket after the retailer announced it appointed activist investor Ryan Cohen as its new Chief Executive Officer. The move ends a months-long period for GameStop, during which the company made turnaround efforts without a CEO.</p> 
<p>In the announcement, the video game retailer said Cohen will not receive compensation for his roles as the company’s chairman and now CEO. Cohen, who <a href="https://tokenist.com/gamestop-up-8-as-choen-buys-443k-shares/" rel="dofollow" class="deco-link">owns a 12% stake in GameStop</a>, was unanimously chosen for the top role by the company’s board.</p> 
<p>Until now, Cohen served as GameStop’s executive chairman, a position he acquired months ago when the electronics retail company fired previous CEO Matt Furlong. According to a securities filing, Cohen will now give up his executive chairman position as he takes the helm at GameStop.&nbsp;</p> 
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<h3 id="cohen-s-impact-on-gamestop">Cohen’s Impact on GameStop</h3> 
<p>Cohen’s involvement with GameStop started long before he was appointed executive chairman. Notably, the entrepreneur joined the GameStop board as a director in early 2021, during the so-called ‘<a href="https://www.cnbc.com/select/what-is-a-meme-stock/" target="_blank" aria-label="meme-stock craze (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">meme-stock craze</a>.’&nbsp;</p> 
<p>The 38-year-old initiated an activist campaign at GameStop amid the retailer’s years-long efforts to turn around its business. Upon replacing GameStop’s executive team in 2021, Cohen tried reviving the company’s sales by doubling down on e-commerce and rolling out an <a href="https://tokenist.com/gamestops-nft-marketplace-clears-5m-in-1-week-whats-to-come/" rel="dofollow" class="deco-link">NFT marketplace</a>, although those endeavors did little to help the business.&nbsp;</p> 
<p>During this period, shares of GameStop saw an unprecedented surge. In particular, a group of retail investors from online forums like Reddit’s WallStreetBets collectively decided to buy and hold GME shares, creating a short squeeze that forced hedge funds to cover their bets against the stock.</p> 
<p>But the rally was unsustainable, with <a aria-label="GameStop experiencing (opens in a new tab)" href="https://fortune.com/2021/06/07/meme-stocks-gamestop-gme-fortune-500/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">GameStop experiencing</a> a volatile and dramatic stock price decline in the following months. Cohen’s arrival at the retailer also impacted GameStop’s turnaround so far, although the company did report better-than-expected results for Q2.&nbsp;</p> 
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<p><em><strong>Now that Cohen has become GameStop’s CEO, do you think he will have a more pronounced impact on the retailer’s turnaround efforts? Let us know in the comments below.</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/gamestop-announces-ryan-cohen-as-new-ceo-stock-soars-7-premarket/">GameStop Announces Ryan Cohen as New CEO, Stock Soars 7% Premarket</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

GameStop Announces Ryan Cohen as New CEO, Stock Soars 7% Premarket

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