GameStop fires CEO and names Ryan Cohen executive chairman

GameStop, the video game retailer, has announced the termination of CEO Matt Furlong and the promotion of Ryan Cohen to the role of executive chairman. The company did not provide a reason for Furlong’s dismissal and did not respond to requests for further information. However, according to a filing with the Securities and Exchange Commission, Furlong will receive payments and benefits associated with a termination without cause. Furlong had been serving as GameStop’s CEO since 2021.

In addition to the leadership shakeup, GameStop released its first-quarter financial results, reporting a decline in revenue from $1.38 billion to $1.24 billion compared to the same period last year. GameStop’s first-quarter financial report shows a notable improvement, with a net loss of $50.5 million, compared to a net loss of $157.9 million in the same period last year. Notably, GameStop canceled its quarterly conference call to discuss the earnings.

Following the news of the financial results and executive changes, GameStop’s shares dropped nearly 20% in after-hours trading. Following his acquisition of a significant stake in the company, Ryan Cohen, the co-founder of Chewy, joined GameStop’s board in 2021.

GameStop gained attention during the “meme stock rally” in 2021, driven by retail investors on platforms like Reddit’s WallStreetBets.