NEW YORK (AP) – GameStop took a step toward a more digital future Monday, naming an activist investor to lead company efforts to push more of its business online.
The stock, which has become the focus of federal regulators after online traders challenged more institutional investors and sent shares gyrating wildly, jumped almost 50% in midday trading.
Ryan Cohen, the co-founder of the online pet supply company Chewy, will chair the company’s new Strategic Planning and Capital Allocation Committee.
Cohen took a huge stake in GameStop before the online frenzy over company shares began in January. He has been seen as an agent of change and someone who knows how to make a traditional business more nimble through technology.
Cohen won a seat on GameStop’s board early this year about a month after the company revealed plummeting sales in its third quarter. He has since lobbied to move GameStop’s focus away from store locations, and toward a more online existence.