GameStop Searches for New CEO
GameStop Corp. has begun a search for a new chief executive officer, three sources close to the situation told Reuters late Monday afternoon. In the past months, GameStop’s chief financial officer Jim Bell and chief customer officer Frank Hamlin both resigned. Hamlin’s last day with the company was March 31, while Bell left in late February.
Although it is unclear whether CEO George Sherman, who came onboard in March 2019, has resigned, the company is working with an executive headhunter to find new leadership as the company “pivots from a brick-and-mortar video game retailer to an e-commerce firm,” Reuters reports.
Sources told Reuters that several members of GameStop’s board of directors are involved in the search, and candidates are being considered from the gaming industry, e-commerce firms and other technology sectors.
The new CEO will, presumably, continue spearheading GameStop’s digital transformation started by former CEO Ryan Cohen, named as chairman of the GameStop board of directors last week. Cohen has also brought in former Amazon executives, including Jenna Owens as chief operating officer and Elliott Wilke as chief growth officer. They are joined by Andrea Wolfe, Tom Peterson and Neda Pacifico, who hail from Chewy, Inc., the online pet food company Cohen founded.
The changes have come about since the company’s fourth-quarter earnings call in late March, which followed a massive GameStop stock rally fueled by retail investors in January and February.
GameStop stock (NYSE: GME) was down nearly 11% at market close Monday, representing a $17 dip for the day, but a difference of $342 from its 52-week high of $483. Only two out of seven analysts following GameStop rate the stock a “hold,” while five recommend selling, Reuters says.
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