GameStop's stock jumps after billionaire investor Ryan Cohen named CEO

By Tomi Kilgore

Cohen will not be compensated for his roles as president, CEO and chairman

Shares of GameStop Corp. surged Thursday, after the consumer electronics retailer named Ryan Cohen as its president and chief executive officer, effective immediately.

The move, which wasn't unexpected, comes a few months after the company fired then-CEO Matthew Furlong, and elected activist investor Ryan Cohen as executive chairman. At that time, Cohen said in a tweet, "Not for long."

Cohen will relinquish his role as executive chairman when he is also appointed chairman.

GameStop's stock GME shot up 7% in premarket trading, putting it on track to open at a three-week high.

Read: Ryan Cohen becomes GameStop CEO and social media reacts: 'Changing the paradigm on Wall Street.'

Cohen, who previously founded and was CEO Chewy Inc. (CHWY), is the manager of RC Ventures, which in June disclosed a 36.85 million-share, or 12.1% stake in GameStop.

"In connection with his appointment, Mr. Cohen will assume the role of principal executive officer from Mark H. Robinson effective immediately and his responsibilities will include the oversight of all other executive officers, including Mr. Robinson," the company said in a statement.

The company said Cohen will not receive any compensation for his roles as president, CEO and chairman, and will "continue to engage in various business activities and pursuits outside of the company."

GameStop's stock, which was one of the original "meme" stocks, has tumbled 37.2% over the past 12 months through Wednesday, while the S&P 500 index (GME) has gained 14.9%.

Also read: GameStop and AMC fundamental filings 'remain concerning,' analyst says.

-Tomi Kilgore

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09-28-23 0904ET

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