Tuesday December 5, 2023

GameStop’s E-Commerce Pivot

  • GameStop is pivoting to focus on online commerce, after a push from activist investor Ryan Cohen.
  • The company's stock surged again on Monday in light of the news.
GameStop/Design: Alex Brooks
Copy Link
Link Copied
Link Copied

Activist investor Ryan Cohen has been tapped to lead GameStop’s digital transformation, and the market loves it.

Cohen is a GameStop board member whose RC Ventures owns around 13% of the company’s stock. The Chewy co-founder will head up the video game retailer’s new Strategic Planning and Capital Committee.

The committee will be tasked with transforming GameStop “into a technology business” with a strong focus on e-commerce, per a company release. Analysts believe the announcement may have sparked the latest surge in the company’s stock price.

GameStop has successfully retained momentum from the January saga in which retail investors poured money into its stock to drive up the price before short sellers would be forced to purchase it back. 

  • Though still below its $483 peak, the stock jumped another 41% on Monday to $194.50 when the new e-commerce plan became public.
  • The stock is over 11 times its price at the start of the year.

Cohen’s move to a leadership role in GameStop coincided with the Reddit-fueled surge; he gained board spots for himself and two allies in January.

Even before spearheading GameStop’s new strategic committee, Cohen was vocal about the company’s need to reimagine its business as an online-first destination and cut costs by moving away from in-person retail.

A major step in the process will be to bring on a new chief financial officer with experience in online retail. Outgoing CFO Jim Bell was forced out in February after disagreements over the direction of the company.

Copy Link
Link Copied
Link Copied

What to Read

Nick Saban highest paid college football head coach.

Who Is Highest-Paid Coach in College Football?

Saban remains atop highest-paid head coaches getting over $11 million annually.

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.

How Daktronics Helps Elite Athletic Programs Secure Top Talent

How colleges are utilizing Daktronics' displays to elevate recruiting.

WBD Pursues ‘Different’ Strategy For Sports on Max

Company to place all of its live sports on new streaming tier
podcast thumbnail mobile
Front Office Sports Today

Premier League Sets New Bar with Media Deals


Featured Today

The College Football Playoff is considering rotating TV networks for the national championship game.

CFP Considers Super Bowl-Like Rotation For National Championship Game

Multiple networks could share rights to the championship game, sources told FOS.
Brett Favre
November 27, 2023

Favre Welfare Case Hold-Up? "AG’s Office Has Not Expressed Interest In Pursuing"

The DOJ interviewed Brett Favre in early 2020.
The future of the Pac-12 rests on a court decision.
November 24, 2023

The Pac-12 Plays Its Final Regular-Season Game. Then A Court Decides Its Fate.

The conference's future rests with a court decision.
Lane Kiffin
November 9, 2023

Ole Miss, Lane Kiffin Lawyers Argue for Dismissal of Player Lawsuit

FOS obtained audio of Lane Kiffin's interaction with the player behind lawsuit.


Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Multiple - USA Careers
Live Nation
Multiple - USA Careers
Saco Bay PT
Multiple - USA Careers
The swoosh logo at Nike Eugene.

Nike Misses Revenue Wall Street’s Projections, But Company’s Stock Soar

The company offset the shortfall by exceeding expectations in earnings per share.
June 30, 2023

Nike To Revive Kobe Signature Shoe Line

Late HOFer will again be the center of a signature shoe line.
The PGA Tour and PIF have a self-imposed Dec. 31 deadline to finalize their golf merger.
August 7, 2023

Saudi Arabia’s PIF Aims Higher With Launch of Sports-Focused Investment Company

The PIF has launched a new company, SRJ Sports Investments.

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
At Dick's Sporting Goods in Fairless Hills, Store Administrative Assistant Christine Vandfermay, of Philadelphia, restocks some Philadelphia Eagles items.
May 23, 2023

Dick’s Sporting Goods Sees Modest Growth, Less Foot Traffic

Dick's Sporting Goods saw a 5.3% increase in net sales in Q1.
Hellen Obiri of Kenya crosses the finish line to win the women's division at the 2023 Boston Marathon.
May 16, 2023

On Wants More Star Power, Visibility for Next Growth Phase

On is looking to grow through tennis and other verticals.
May 11, 2023

Topgolf Callaway Lowers Sales Expectations

Callaway cut its profit forecast for this year.
May 10, 2023

Endeavor Posts Record Quarter Amid UFC-WWE Merger Plans

Endeavor bought WWE in April, it also sold its IMG for $1.25B.