Shares of GameStop Corp.
shot up 10.2% in premarket trading Monday, after the video game retailer announced an agreement with activist investor RC Ventures LLC that includes immediately adding three members to its board of directors. One of the new board members is Ryan Cohen, who is the manager of RC Ventures, which is GameStop’s second largest shareholder with 13.8% of the shares outstanding, according to FactSet data. Cohen was also founded and was previously the chief executive officer of Chewy Inc.
“We appreciate the constructive dialogue we have had with Ryan over the past several months,” said GameStop Chief Executive George Sherman. “Together, we have reached an outcome that is in the best interest of all stockholders and can enable GameStop to accelerate efforts to deliver enhanced value for the company.” Separately, GameStop said same-store sales for the 9-week holiday sales period ended Jan. 2 rose 4.8% from a year ago. Net sales for the period fell 3.1% to $1.77 billion, as strong demand for gaming consoles was offset by store closures, while e-commerce sales soared 309% to represent about 34% of total sales. The stock has soared 47.2% over the past three months through Friday, while the S&P 500
has gained 10.0%.