Matthew Furlong, former CEO of GameStop, has been fired without cause, according to GameStop’s report.
GameStop it’s a franchise quite popular in the gaming worlddespite the fact that it only has headquarters in Anglo-Saxon countries, I think that all of us who have been part of the gaming community know of its existence.
Nor is it new that the brand, despite having enjoyed quite a marked popularity in the 2000safter 2010 and onwards, it was seen black in terms of popularity and sales. And it is that unfair prices for customers who were going to sell their used games, overprice on your merchandise, and annoying subscription tactics caused many to migrate away from GameStop, not to mention the emerging popularity at the time of digital games.
Curiously, the outlook did not look good for the brandand it was almost certain that they would close their doors, until, a subreddit called WallStreetBets came into the picture, and they saw that investing in the company’s shares could be beneficial for them, plus they are a group that tends to target short investors, so They decided to go all in for the company’s shares.
As Gamerant reminds us, GameStop shares were worth less than $1but when the redditors got down to business, the actions came to be worth $86.88causing massive breaks to investors selling short and reviving the brand once again. Currently, GameStop shares are going dfrom $16 to $25and have been active ever since.
Now, why have I decided to tell all this? The truth is because the main news does not say much. GameStop CEO Matthew Furlong was fired, there is no controversy or anything; in fact, the report that GameStop has made makes it clear that it was fired without causeand now the new CEO is a Canadian who owns 10% of the shares of the company, called Ryan Cohen.
It is speculated that although there is no obvious reason, it is likely that things are not flowing quite well within the companyand it is that in December of last year it was reported that GameStop would fire a large part of its employees due to financial problems.
The second reason why I decided to give all of the above context is because, clearly, GameStop enjoyed a momentary stroke of luck that allowed him to breathe once more. But will they be able to rise again or will the brand sink again?
Although the company is looking reinvent itself as a digital commerce technology companythey have not yet been able to hit the nail on the head, and it is presumed that this will be one of many power shifts what the company could see as they continue to work to stay afloat and look for someone who can steer the franchise on a financially stable path.
