Gamestop investor Cohen pushes for strategic review: WSJ

(Reuters) – Ryan Cohen, the biggest individual investor in GameStop and co-founder of e-commerce firm Chewy Inc , is pushing the videogame retailer to conduct a strategic review, the Wall Street Journal reported on Monday, citing a letter sent to the company’s board.

Cohen said GameStop’s bricks-and-mortar-centric business model is outdated and lags behind the broader industry, the report said https://www.wsj.com/articles/gamestops-new-billionaire-investor-calls-for-tech-centric-makeover-11605565458. Shares of the company dropped 4% after the bell.

Earlier in September, Cohen had raised his stake in GameStop to nearly 10% from 9.6% and disclosed that he was in active discussions with the company’s management and board members.

Cohen is urging the company to reduce the number of physical stores, focus on improving e-commerce and explore other tech-driven opportunities in areas such as esports, mobile gaming and game streaming, according to the report.

GameStop did not immediately respond to a Reuters request for comment.

(Reporting by Ayanti Bera in Bengaluru; Editing by Shailesh Kuber)