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The guy who started the GameStop mania will soon be chairman of the board

April 8, 2021. Summarized by summa-bot.

Compression ratio: 60.3%. 1 min read.

NEW YORK - NEW YORK - MARCH 23: People walk in front of GameStop at 6th Avenue on March 23, 2021 in New York. GameStop stocks falls more than 10% after the video game store showing strong earnings but lower than expected. (Photo by John Smith/VIEWpress)

George Sherman may still be the CEO of meme stock poster child GameStop. But it looks like Chewy co-founder Ryan Cohen is really running the show.

New York (CNN Business)George Sherman may still be the CEO of meme stock poster child GameStop.

GameStop (GME)said Thursday that it planned to nominate Cohen, whose investment firm RC Ventures owns a nearly 13% stake in the company, to be its next chairman following GameStop's annual meeting on June 9.

The company also said Thursday that following the annual meeting, all board directors will be compensated entirely in stock -- which presumably will motivate them to take action to boost the price further.

Shares of GameStop rose about 5% on the news.

GameStop shares are up nearly 850% in 2021 -- but are currently trading more than 60% below their peak price from late January.

Bulls hope that Cohen, who helped build online pet supplies store Chewy (CHWY) into a digital commerce juggernaut, will be able to work his e-commerce magic with GameStop too.

GameStop named Cohen as the head of a strategic planning and capital allocation committee in early March.

As part of that role, Cohen was expected to strengthen GameStop's online commerce operations.

GameStop, like many retailers, has been hit hard by the Covid-19 pandemic.

But GameStop had been struggling even before coronavirus, in large part because of a shift to more online and mobile games that could be downloaded directly to phones, consoles, PCs and tablets.

Enter Cohen, who first took a stake in GameStop in September 2020.

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