Updated Jun 7, 2023 - Economy
GameStop fires CEO, names Ryan Cohen exec chair
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GameStop on Wednesday fired CEO Matt Furlong, and named Ryan Cohen as executive chair.
Why it matters: GameStop is the retailer at the center of the 2020 meme stock madness, in which Cohen played a starring role.
- GameStop shares plummeted in aftermarket trading on the announcement, after a day in which they'd climbed nearly 6%.
Backstory: Cohen founded and led Chewy, the pet supplies e-commerce company, before becoming an activist investor who in mid-2020 disclosed around a 10% stake in GameStop.
- The following year he effectively assumed control of the company, installing Furlong as CEO and pledging to turn the company into an e-commerce giant.
- Now Cohen is basically shaking up his own shakeup, and slighting Furlong with a 42-word press release that doesn't even use Furlong's name.
Thought bubble, from Axios' Felix Salmon: "Furlong's stock award was concentrated in years 3 and 4. By terminating him now, Cohen is saving the company millions of dollars in CEO compensation costs."
