SARATOGA, Calif.--(BUSINESS WIRE)--Scion Asset Management, LLC (together with its affiliates, “Scion”) announced that Scion has voted FOR ALL of the 10 nominees proposed by the Board of Directors of GameStop, Inc. As of the record date for GameStop’s 2020 annual meeting, Scion beneficially owned approximately 3,400,000 shares of GameStop’s common stock. As of the date of this press release, Scion beneficially owns approximately 2,750,000 shares, or 4.26%, of GameStop common stock.
Scion believes that GameStop is on the right course.
Scion believes CEO George Sherman, appointed by the Board in 2019, is progressing quickly in reshaping GameStop to thrive into and beyond the coming console upgrade cycle. Scion believes that under Sherman, GameStop is approaching its own reboot in a sensible and innovative manner.
Scion noted that Sherman, along with CFO Jim Bell, have revamped working capital management for improved efficiency. Most crucially, it appears to Scion that GameStop is now succeeding in transforming vendor partnerships to unlock high-margin revenue streams. Scion believes that this is a direct result of current management’s expertise and focus and is a complete gamechanger for GameStop beyond the coming console upgrade.
Scion also applauds the recent additions to the Board of Directors.
In March 2020, GameStop announced the appointment of three new independent directors. These accomplished individuals – Reginald Fils-Aimé, William Simon and James Symancyk – have either video game industry experience or omnichannel retail experience, or both. All have terrific reputations and, in Scion’s view, will maximize GameStop’s odds of success.
Messrs. Fils-Aimé, Simon and Symancyk joined a Board that is now largely refreshed, with six new independent directors added to the board over the last 2 years. As a shareholder, Scion has taken to heart the signs of progress and has decided to give these new directors a chance to continue GameStop’s transformation.
Scion believes that the recruitment of the three newly appointed directors and the announced retirement of four incumbent directors in June 2020 and two additional incumbent directors in June 2021 signify GameStop’s renewed commitment to its shareholders. Scion believes that the newly comprised Board will help GameStop navigate these challenging times armed with both a deep knowledge base and significant applicable experience.
In Scion’s view, the candidates proposed by the dissident hedge fund lack relevant experience.
Scion points out that the dissident slate consists of two individuals that possess neither relevant video game industry experience nor omnichannel retail experience.
Scion does not believe GameStop needs new individuals who have been identified by a hedge fund to join the Board and disrupt and detract from GameStop’s current productive execution of its reboot.