[Asia Economy Reporter Yuri Kim] GameStop (GME) CEO George Sherman is stepping down from his position.
According to major foreign media on the 19th (local time), GameStop announced in a statement that CEO Sherman will resign. Sherman will officially step down as CEO on July 31. The company explained that the resignation date could be moved up if a successor is appointed. Sherman has served as GameStop's CEO since April 2019.
The game retailer GameStop has been pushing for a business structure shift from offline to online. In a report submitted to the Securities and Exchange Commission (SEC) last month, GameStop revealed that "the board has hired an external firm to evaluate the management," indicating a possible management change.
Earlier this year, GameStop became famous as a "short selling battleground" between individual investors known as "ants" and large hedge funds. Short selling is an investment method where investors who expect the stock price to fall borrow shares to sell, then buy them back at a lower price to repay the loan and earn a profit. When hedge funds engaged in large-scale short selling of GameStop shares, individual investors retaliated by accumulating stocks, mainly through a discussion forum called "WallStreetBets" on the social media platform Reddit, driving up the stock price.
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