GameStop agrees to appoint three directors on investor’s demand

GameStop agrees to appoint three directors on investor’s demand

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FILE PHOTO: Outside a GameStop store people line up to purchase a Sony PS5 gaming console in the Manhattan borough of New York City, New York, U.S., November 12, 2020. REUTERS/Carlo Allegri

(Reuters) – GameStop Corp signed an agreement with investor Ryan Cohen’s RC Ventures LLC on Monday, appointing the Chewy.com founder and two other e-commerce veterans to its board as the ailing videogame retailer doubles down on digital sales.

Shares of GameStop, in which RC Ventures holds a 13% stake, were up 8% in premarket trading.

RC Ventures in November urged the world’s largest videogame retailer, hit by growing digital downloads of console games and intense competition, to conduct a strategic review of its business and focus on digital sales.

Alan Attal and Jim Grube will be the other directors on GameStop’s board, the company said.

Reporting by Tiyashi Datta and Munsif Vengattil in Bengaluru; Editing by Shinjini Ganguli

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