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GameStop CEO stepping down, causing stock to soar

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George Sherman, the CEO of GameStop, will step down in July.

The buzz revolving around GameStop continues to become more apparent these days. Following the whole controversy regarding the company’s stock, alongside its shocking rise, earlier this year, the spotlight remains.

On Monday, the public learned that CEO George Sherman would step down in July. Comic Book reported that this will continue the “seismic changes” of the company over the last few months.

GameStop confirms CEO’s exit

GameStop confirmed the reports, noting that the exit is set to take place on July 31. But, this may change on a much earlier date if a “suitable replacement can be found” in the next few weeks.

Reports said that the news comes after the company “had engaged an executive headhunter to replace” the CEO. As explained, they are increasing the rate of the company’s “transformation into a primarily e-commerce driven business.”

George Sherman has helped the company amid the COVID-19 pandemic. Despite this, though, his reported expertise in “brick-and-mortar retail” does not line up with GameStop’s future movements.

Ryan Cohen to become the Chairman of the Board

CNN said that the news did not surprise the public, considering that Ryan Cohen “has been cementing his control over GameStop.” His RC Ventures firm owns about 13 percent stake in the company and has since led its “pivot to digital.

The publication continued that he is set to become the Chairman of the board two months from today. This will take place at the next shareholder meeting in June.

Cohen released a statement following the confirmation of Sherman’s exit from the company as its CEO. He said that “GameStop appreciates the valuable leadership” that he has provided throughout his time in the company.

The upcoming Chairman of the Board consequently emphasized that Sherman “took many decisive steps to stabilize the business during challenging times. He then ended his notes by saying that “the Company is much stronger today” because of its CEO.

GME stock soars high

GameStop shares rose 6.3 percent following the announcement on Monday. Several publications credited the rise of GME’s stocks to George Sherman’s exit, as well as the continuing transition of the company.

The overall sales were down 3 percent in the most recent quarter. It is even reportedly “below Wall Street expectations.”

Nevertheless, GameStop’s stock has soared more than 700 percent this year. Moreover, its online sales have reached more than the doubled value.

Images courtesy of (1)Will Buckner/Flickr & (2)Mike Mozart/Flickr

Mike Pantoja-Contreras

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Mike Pantoja-Contreras

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