GameStop takes its first steps in anticipated e-commerce shift, sparking a fresh rally; shares surge 35%

Shares of GameStop jumped more than 45% after the company announced Monday that it has tapped Chewy co-founder Ryan Cohen to lead its shift to e-commerce.

Cohen is serving as chairman of a special committee formed by GameStop’s board to help its transformation. Board members Alan Attal, Chewy’s former top operations executive, and Kurt Wolf, chief investment officer of Hestia Capital Management, also serve on the committee.

Cohen invested in GameStop last year to push the video game retailer to focus on online sales and turn away from physical stores. His involvement with the company helped spark the stock’s wild ride earlier this year. Shares of GameStop have surged 970% so far in 2021, giving the company a market value of $14.2 billion.

The committee has already appointed a chief technology officer, hired two executives to lead customer services and e-commerce fulfillment, and begun a search for a new chief financial officer with tech or e-commerce experience. GameStop previously announced that current CFO Jim Bell will resign on March 26. Citing sources familiar with the matter, Business Insider reported that Bell was pushed out by Cohen.

The new committee has also appointed Attal as chair of the board’s nominating and corporate governance committee and Wolf as chair of the board’s compensation committee. The responsibilities of the special committee include evaluating GameStop’s operational objectives, capital structure and allocation priorities, digital capabilities, organizational footprint, and personnel.