A GameStop store is seen in the Jackson Heights neighborhood of New York City, New York, USA January 27, 2021. Image taken January 27, 2021. REUTERS / Nick Zieminski / File Photo
George Sherman of GameStop Corp (GME.N) will step down as CEO of the largest video game retailer shakeup as he tries to throw his brick image and adopt an e-commerce model .
Shares of the video game retailer, which was at the center of a Reddit-based commercial frenzy, rose 7 percent in the premarket market on Monday after the company said Sherman would resign on or before July 31 and began looking for a successor.
Reuters reported earlier that the GameStop board is working with an CEO to look for the CEO and that its directors have spoken to potential candidates in the gaming, e-commerce and technology sectors.
The latest development comes as Ryan Cohen, co-founder and former CEO of online pet food company Chewy Inc (CHWY.N), is trying to squeeze his GameStop better after joining its board. in January.
Former CFO Jim Bell and former client manager Frank Hamlin are among the top executives who have left the company in recent weeks.
GameStop has become an e-commerce firm that can compete with large-scale retailers such as Walmart Inc (WMT.N), as well as technology companies Microsoft Corp (MSFT.O) and Sony Corp (6758 .T). .
Separately, Bloomberg News reported that the man known as “Roaring Kitty” on social media, whose online posts helped trigger the January trade frenzy in GameStop, exercised stock options to buy another 50,000. of shares at a weight price of 12 USD. Read more
GameStop earlier this month also raised the value of new shares it could sell from $ 100 million to $ 1 billion as it capitalizes on the growth of its shares since the rally led by traders with January retail. Read more
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