Ryan Cohen has bought GameStop GME-N stock worth $10-million, a securities filing showed on Tuesday, in a sign that the activist investor was trying to boost shareholder morale after the company lost its fifth CEO in five years last week.
Shares of the company jumped 7.7 per cent in early trading. They are down nearly 80 per cent from their peak of $120.75 hit during the meme-stock frenzy of 2021.
The company’s board last week ousted Matt Furlong, a former Amazon executive who was handpicked to lead the largely brick-and-mortar operations company’s online expansion, fanning concerns about the video game retailer’s ailing business.
Furlong’s exit came as the company struggles to turn a corner after it posted a bigger-than-expected loss for the latest three months and missed revenue expectations, with net sales falling for a fourth straight quarter last week.
Cohen – who owns about 12 per cent of the company through his firm, RC Ventures – pushed the company to pursue a strategic review of its business in 2020 and was elected chairman in June 2021.
Cohen promised investors a digital pivot, with a focus on e-commerce, but the company has struggled to realize the goal.