GameStop’s share price rose Wednesday after the “Reddit Rally” favorite hinted at efforts to supercharge its digital development plans.
Shares of the Texas-based video game retailer climbed 10 percent to an intraday peak of $ 49.57 as it announced that Chief Financial Officer James Bell would leave on March 26 after less than two years in the job.
The company said it hired an executive search firm to find a successor that could “help accelerate the transformation of Gametop.”
The company is looking to move its business from selling physical video game equipment to working in digital games as the industry moves online.
GameStop did not explain why Bell resigned except to say on Tuesday Regulatory filing His departure was “not due to any disagreement with the company” or an issue with its operations, policies or practices.
Bell is slated to receive a nearly $ 30 million compensation package out the door, including $ 2.8 million severance and millions in stock, According to Bloomberg News
GameStop said in a press release, “Thanks to the company for their significant contributions and leadership, including their efforts over the past year during the COVID-19 pandemic.”
The shakeup came less than a month after rogue investors on Reddit’s WallStreetBets forum and GameStop’s share price went as high as $ 483 in a campaign to squeeze hedge funds to wager against the stock.
The unprecedented market frenzy made GameStop synonymous with the populist boom in the stock market that attracted the attention of federal lawmakers and regulators. The company remained silent and reportedly decided against raising money by selling shares during the rally.
GameStop is leading a change under the leadership of Chewy.com founder Ryan Cohen, who was named to the company’s board in January after buying a 13 percent stake.
Some investors, including Keith Gill – a retailer known as “Rottering Kitty” who is credited with sprucing up Gametop Surge – think the retailer can reinvigorate itself by expanding its e-commerce business .