Video game retailer GameStop appointed executive chairman and major investor Ryan Cohen to chief executive early Thursday. GME stock reversed lower Thursday after spiking in premarket trade.
Cohen was promoted from chairman to executive chairman in early June when GameStop abruptly fired CEO Matthew Furlong. Furlong, a former Amazon.com executive, served two years in the role.
Cohen will serve as president, CEO and chairman, effective immediately. Cohen's responsibilities will include oversight of all other executive officers, including Mark Robinson who was serving as principal executive officer. Robinson will remain with GameStop as general counsel and secretary.
GameStop said Cohen will not receive any compensation for his role. Cohen will "continue to engage in various business activities and pursuits outside of the company," GameStop wrote in a statement.
The founder and former CEO of Chewy, Cohen led the pet products delivery company until 2018. Privately owned PetSmart acquired Chewy for $3.35 billion in 2017. Cohen first took exposure to GameStop in 2020, contributing to GME's rise to meme-stock status.
Cohen's firm RC Ventures has a 12.09% stake in GameStop, FactSet data shows, making him the largest insider shareholder. Cohen joined the board as director in early 2021 and rose to chairman in June after a restructuring.
In early September, the Securities and Exchange Commission reportedly launched a probe into Cohen's 2022 sale of his Bed Bath & Beyond holdings. In March 2022, Cohen disclosed taking a big stake in Bed Bath & Beyond and pushed for changes. That August, he abruptly sold his 11.8% stake, days after tweeting positively about the retailer.
The billionaire Cohen netted a $60 million profit.
GME Stock
GameStop shares fell 1.8% Thursday after leaping nearly 7% in premarket trade. GME stock dropped 27% for the quarter through Wednesday's close and is down about 9% in 2023.
Shares bolted from around 1 in August 2020 to an all-time high of 120.75 in January 2021 as retail investors bought into the meme stock craze. GME stock since tumbled on regular quarterly losses and a lack of revenue growth.
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