Retailer GameStop has announced that the company’s board of directors has put together a new committee. The task of this committee is to target ways in which the business can be transformed into a technology company at an even faster pace.
This new committee is called The Strategic Planning and Capital Allocation Committee. It consists of Alan Attal and Ryan Cohen, former executives for Chewy, and Kurt Wolf. Wolf has been elected to the board of directors thanks to shareholder votes last year. Though this was against the company’s recommendations. Attal and Cohen are relatively new additions, having joined the company in January.
Thanks to the efforts of this committee, movement has already been made towards their ultimate goal. A new CTO in the form of Matt Francis has been appointed, two new executives have been added to the team, and the search for a new CFO is already underway after the previous CFO, Jim Bell, abruptly left his post.
A press release from GameStop states that the committee will be continuing to focus on identifying and following up actions to push GameStop into becoming a technology business over a game-specific outlet. This, it is said, will help make for a much more enduring prospect for any stockholders.
The company is also still in the process of looking inward. Evaluating current operational objectives, allocation priorities, capital structure, the organisational footprint, digital capabilities and potential, and personnel all currently present in the business.
It’s no secret that this verve and push to make the company more of a technology business is driven by the recent surge in the company’s share price. The short squeeze allowed many to make a lot of money out of GameStop’s shares, but the company wasn’t able to do a thing. Due to certain earnings failing to be reported in time, the company couldn’t make a dime from the squeeze.
At the time of writing, shares in GameStop sit at $185. It’s entirely possible that another squeeze could be caused by WallStreetBets. However, with GameStop pushing to change its business, the share price could rise naturally as the company does better and better.