Matt Furlong took the reins of GameStop on June 9, 2021. After two years at the head of this video game distributor, the man who brilliantly succeeded in setting up an NFT marketplace was fired. What are the reasons for this revocation ? Explanations in this article.
GameStop part ways with its CEO
Matt Furlongthe man who steered GameStop towards NFTs, through the creation of a successful marketplace, was removed from office. Thus, he only occupied the CEO position of this video game store only during 2 short years.
A press release published on June 7 on BusinessWire allowed us to learn this news.
” GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that its Board of Directors has elected Ryan Cohen as Executive Chairman, effective immediately. Mr. Cohen’s responsibilities include capital allocation and management oversight.
At the same time, the company’s former CEO was removed from office. »
According to Cointelegraphthis dismissal took place during the conference call on the GameStop first quarter results. On the occasion, the leaders of this American company announced a net loss of $50.5 million. However, a year earlier, it has already posted a loss of 159.9 million dollars.
Also, we will note that GameStop’s share price fell 19%to trade at $21.
What justify the dismissal of Matt Furlong, author of these poor results.
It should also be noted that at the same time the latter also resigned from his post as administrator of GameStop.
End of Matt Furlong’s contract
A 8-K document filed with the SEC on June 9, 2021 also disclosed to us that Mr. Furlong arrived at the term of his contract with GameStop. Indeed, it would have obtained a trial period of 24 months at the time.
” Fun fact:
Matt Furlong only had a 24 month deal with GameStop which ended this week… »
For this fallen CEO, the debut at GameStop was a total success. Aside from launching a marketplace on layer 2 of Ethereum (ETH) in 2022, it has also contributed to a GameStop share price jump 5 months after his appointment. At the time, an increase of 3,000% was mentioned, to reach 500 dollars.
He was even at the origin of a collaboration with FTX in order to promote the crypto market. But Matt Furlong had to backtrack for reasons of failure.
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