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GameStop axes CEO Matt Furlong, promotes Ryan Cohen as executive chairman amid Q1 earnings reveal. Explore the shakeup’s impact on the company.
Key Takeaways:
- GameStop CEO Matt Furlong has been fired with Ryan Cohen, the company’s board chairman, appointed as executive chairman.
- Furlong’s exit came amidst a challenging period for GameStop, with the company experiencing financial setbacks.
- Ryan Cohen, known for his involvement in ‘meme stocks’, is expected to leverage his e-commerce experience to turn GameStop’s fortunes around.
GameStop Announces a Major Leadership Shuffle: CEO Matt Furlong Out, Ryan Cohen In
GameStop, the renowned video game retail corporation, revealed yesterday that it has parted ways with its CEO, Matt Furlong, as part of the company’s Q1 2023 earnings disclosure. Ryan Cohen, the board chairman, will fill the void as executive chairman, injecting a new leadership dynamic into the company.
Not for long
— Ryan Cohen (@ryancohen) June 7, 2023
The Meme Stock Maven Takes the Reigns
Cohen, a co-founder of successful e-commerce platform Chewy, has a history with so-called “meme stocks,” which includes companies like GameStop and Bed Bath & Beyond. His unexpected sell-off of Bed Bath & Beyond shares in 2022 caused quite a stir, leading to allegations of stock price manipulation. Cohen’s initial investment in GameStop in 2021 sparked a massive uptick in the company’s share price, turning it into a darling of the meme stock circuit, particularly among users of the Reddit sub r/wallstreetbets.
Furlong’s exit occurred abruptly on June 5th, sans explanation, as revealed in the company’s 10-Q report. Furlong’s tenure at GameStop, which began in June 2021 amidst the height of the company’s stock frenzy, saw several notable initiatives including an exploration into NFTs and workforce reductions.
Prior to joining GameStop, Furlong had spent eight years at Amazon, ultimately overseeing the company’s Australia operations. His arrival was accompanied by a raft of Amazon executives taking over key positions within GameStop, all of whom have since left.
GameStop’s Management Restructuring Continues
Mark Robinson, a GameStop veteran of nearly eight years, has been promoted to “principal executive officer” with the title of general manager, as per the company’s 10-Q form. Robinson previously served as GameStop’s general counsel.
In an unusual move, GameStop cancelled its customary earnings call yesterday. The shakeup at the top has occurred alongside a challenging financial period for GameStop. Their Q1 results reported a revenue of $1.24 billion, marking a dip from the $1.38 billion during the same period last year.
Despite the recent turbulence, the gaming giant is hoping for a brighter future under Cohen’s leadership. Ryan Cohen, initially joining GameStop’s board in 2021 after acquiring a substantial 13% stake, has been at the heart of investor hopes to rejuvenate the company’s fortunes.
