Shulou(Shulou.com)11/24 Report--

GameStop, a video game retailer, fired CEO Matt Furlong and appointed billionaire Ryan Cohen as executive chairman on Wednesday, Beijing time. Affected by the news, the company's shares fell more than 20 per cent in after-hours trading.

Fulon joined the game station in 2021, months after the company was at the centre of a "retail vs. Wall Street" whirlpool whose value was touted by many social media traders.

The company's shares have fallen by more than half since Gaming Post announced the appointment of Fulong as CEO, down about 65 per cent since June 2021.

Billionaire Cohen made a profit of $3.5 billion by selling online pet retailer Chewy in 2017. He has been chairman of the game station since 2021, and he is also a major shareholder.

According to people familiar with the matter, Cohen is very attentive to the operation of the game station and is also a demanding boss. Cohen initially promoted the transformation of game stations into e-commerce giants, but when online sales fell, he changed direction and began to bet on brick-and-mortar stores.

He reshuffled GameStop's executive team and poached former Amazon employees such as COO Genna Jenna Owens and former CFO Michael Michael Recupero.

Owens left the company in October 2021, just seven months after he joined the company, and Ricardo was fired last year.

"it reflects that they have no strategy at all, they want to be 'like Amazon', so they poached Amazon people in 2021." Wedbush Securities analyst Michael Pachter (Michael Pachter) said.

The game station did not disclose the reasons for Fulong's dismissal and had no immediate comment. Mr. Cohen and his spokesman have yet to respond.

Cohen has also invested in retail-oriented companies such as Bed Bath & Beyond, Alibaba and Nordstrom.

Mr Pachter says Mr Cohen "does not have the ability to run the retail business... just as Elon Musk runs Twitter."

Cohen won a seat on the Bed Bath board last year. Mark Tritton (Mark Triton), the company's CEO, left the company later. Cohen sold his stake in Bed Bath in August last year, causing the company's share price to plummet.

"this is a company in recession, but investors expect Cohen to magically turn things around," said Thomas Hayes, chairman of Great Hill Capital.

The company's revenue fell for the fourth consecutive quarter and fell short of Wall Street expectations and a loss exceeded market expectations, according to results released on Wednesday.

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