GameStop shares sharply lower after CEO Furlong terminated

Investing.com -- GameStop Corp (NYSE:GME) shares shed more than 19% of their value at the U.S. market open on Thursday after the video game retailer announced that it had terminated its chief executive officer in a shakeup of its leadership team.

CEO Matt Furlong stepped down from the board on June 5, GameStop said. The business noted in a regulatory filing that his "resignation did not result from any disagreement with the Company on any matter relating to the Company’s operations, policies or practices."

Meanwhile, Ryan Cohen was named as GameStop's executive chairman "in conjunction" with Furlong's departure, the filing said. Cohen, who previously served as the firm's chair, became a favorite of meme stock investors after he built stakes in GameStop and now-bankrupt big box retailer Bed Bath&Beyond.

Mark Robinson was also appointed as general manager and principal executive officer after he served as general counsel since January 2022. In the new role, he will oversee the "legal and human resources functions" of the company.

The changes come as GameStop attempts to boost sales, which have been under increasing pressure as downloadable console games dissuade shoppers from buying the hard copies sold at its shops. First-quarter results released on Wednesday missed Wall Street estimates.