Business

Despite GameStop's stock boom, the company is still struggling — take a look inside Ryan Cohen's ambitious plan to ...


That's an especially meaningful claim to fame when it comes to Wall Street, which saw Cohen's involvement in the company as a reason to buy the ailing retailer's stock before Reddit found it.


"GameStop's leadership should immediately conduct a strategic review of the business," he said, "and share a credible plan for seizing the tremendous opportunities in the rapidly-growing gaming sector."


"GameStop needs to evolve into a technology company that delights gamers and delivers exceptional digital experiences — not remain a video game retailer that overprioritizes its brick-and-mortar footprint and stumbles around the online ecosystem."


GameStop CEO and board member George Sherman, "appears committed to a twentieth-century focus on physical stores and walk-in sales, despite the transition to an always-on digital world," Cohen said, and the board lacks "the type of strategic vision" necessary for GameStop, "to pivot toward becoming a technology-driven business that excels in the gaming and digital experience worlds."


That criticism appeared to have a major impact, as GameStop announced in early January that Cohen and two of his former Chewy lieutenants would become new members of the board.


A customer laughs with a clerk as he purchases a copy of the video game "Grand Theft Auto IV" at a GameStop store in New York Lucas Jackson/Reuters In September 2020, when Cohen initially purchased a significant chunk of the company's shares, he privately proposed a plan to the board to focus GameStop on e-commerce opportunities.






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