GameStop Taps Amazon Executives to Lead Turnaround Effort

(Bloomberg) -- GameStop Corp. is tapping a pair of Amazon.com Inc. executives to lead its turnaround effort, betting they can carry out an audacious plan to convert a brick-and-mortar chain into an e-commerce powerhouse.

• Matt Furlong, who oversaw Amazon’s Australian business, will become chief executive officer of GameStop, while fellow Amazon veteran Mike Recupero will serve as chief financial officer, the video-game seller said Wednesday. Furlong starts on June 21, and Recupero begins work July 12.
• The company also reported better sales than analysts predicted. They came in at $1.28 billion in the fiscal first quarter, which ended May 1. Analysts projected $1.17 billion. GameStop’s loss was also narrower than expected, and the company announced plans to sell as much as 5 million shares through a so-called at-the-market offering.
• See more details.

Key Insights

Market Reaction

• With the company planning to sell more shares -- and diluting the holdings of existing investors -- GameStop slid in late trading. The stock had reached all-time high of $483 in January, before slumping and then rallying again. It was up less than 1% to $302.56 Wednesday at the close.

Get More

• Read GameStop’s statement.
• See Wall Street estimates.

©2021 Bloomberg L.P.