GameStop kicks off search for a new CEO: sources
GameStop is searching for a new CEO as it pivots from a video game retailer to an e-commerce firm, sources familiar with the matter said on Monday.
GameStop stock has surged nearly 4,000% from a year ago, thanks to a trading frenzy sparked by amateur investors betting on so-called "meme stocks" featured in Reddit chat groups.
Sources say the new shift would be GameStop's biggest shake-up since Ryan Cohen, former CEO of online pet food company Chewy, joined the board in January, laying the groundwork for a shift in company culture and strategy.
They added that GameStop's board is working with an executive headhunter on the CEO search.
A GameStop spokesman declined to comment.
The search is the latest in a string of changes Cohen has spearheaded since joining the company.
George Sherman, who had served as GameStop CEO since 2019, has been credited internally with slashing costs and steering the company through the global health crisis, as many other retailers went out of business.
But sources say Sherman's 25 years of experience have mainly been with brick-and-mortar retailers like Home Depot, a far cry from the digital transformation Cohen is aiming for.
Cohen has pushed for a number of hires from e-commerce giant Amazon as well as Chewy.
But many Wall Street analysts are skeptical about the company's ability to reinvent itself.
GameStop shares fell roughly 11 percent on Monday.
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