GameStop Abruptly Fires CEO, Names Ryan Cohen As Executive Chairman

GameStop (NYSE: GME) has fallen over 18% in after hours trading after issuing a brief news release wherein it identified it has fired its chief executive officer.

The release, issued just five minutes after the closing bell, revealed that activist investor Ryan Cohen was named as Executive Chairman of the company before stating that in conjunction with the decision, “the company’s former CEO has been terminated.” The release was so brief that it did not reference now-former CEO Mathew Furlong by name, or thank him for his service.

Furlong had been appointed to the role of CEO in June 2021.

Ten minutes after the abrupt announcement, the company issued a press release on its first quarter financial results, posting net sales of $1.24 billion, a decline from $1.38 billion in the prior year. GameStop also reported a net loss of $50.5 million, while reporting a cash, cash equivalents and marketable securities position of $1.31 billion as of April 29, 2023.

The related conference call has also been cancelled in connection with the management changes.

GameStop last traded at $21.25 in after hours trading.

Information for this briefing was found via Edgar and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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