GameStop Corporation's GME new executive Chair Ryan Cohen made his intentions clear about how long he intends to serve shortly after he was appointed.
What Happened: Cohen said on Twitter approximately half an hour after the announcement was made, "Not for long."
The company's former CEO Matt Furlong resigned from his post on June 5. GameStop announced on the market close on Wednesday that Cohen's duties will include "capital allocation and overseeing management."
Previously, Cohen, an activist investor, had served as Chair of GameStop. He took a 9% stake in the company, which was disclosed in August 2020 and later increased his stake to 13%.
Why It Matters: Before Furlong resigned, Cohen had posted two notable tweets.
A day before Furlong resigned, Cohen said, "My gastro once told me it is a terrible mistake that people often mistake kindness for weakness."
On May 24, Cohen, who founded e-commerce retailer Chewy Inc. CHWY, noted that the average CEO is paid 351 times as much as a typical worker in their industry.
GameStop said that Furlong's resignation was not the result of any disagreement with the company, according to a prior report.
The video game retailer gained cult status with retail investors after its shares were heavily shorted by hedge funds in 2021.
On Wednesday, GameStop reported a first-quarter net loss of $50.5 million. Earnings per share came in at a negative 14 cents missing the Street estimate of negative 12 cents per share, according to Benzinga data.
Price Action: On Wednesday, GameStop shares fell nearly 19% to $21.09 in the after-hours session. The shares had closed 5.75% higher at $26.11 in the regular session, according to Benzinga Pro data.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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