According to the various reports, GameStop Corp, which has been the subject of a recent Reddit-fueled trading frenzy that it plans to elect activist investor Ryan Cohen as chairman, placing him in charge of the videogame retailer’s transformation. Since joining GameStop’s board of directors in January 2021, Chewy co-founder Cohen has pushed for the company’s transformation into an e-commerce powerhouse capable of competing with big-box stores like Target and technology giants and companies like Microsoft.
The reports also suggested that the company announced, six individuals, including Cohen, would be nominated for election to its board of directors at the company’s annual meeting of stockholders. In premarket trade, GameStop stock was up over 3%, breaking a three-day losing streak. The news comes after GameStop raised the valuation of the new stock it would sell from $100 million to around $1 billion on Monday, hoping to profit from a boom in its stock as a result of the Reddit-fueled rally.
Various reports also suggests that the GameStop stock has risen over 900 percent in extremely volatile trading as amateur investors mobilised on social networking platforms like Reddit staged a tenacious buying spree, defeating Wall Street hedge funds that had shorted the stock.
Moreover, Larry Cheng, co-founder and managing partner of investment company Volition Capital, and Yang Xu, senior vice president of global finance and treasury at the Kraft Heinz Co., are also on the board of directors. Kurtis Wolf resigned from GameStop’s board of directors, according to a regulatory filing. According to GameStop, his departure was not the result of any disagreements with the organisation about its activities.
