Former Chewy CEO tries to push GameStop to become the Amazon of the video-game industry

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Former Chewy CEO Ryan Cohen thinks GameStop can become a juggernaut in the video-game industry once again if it builds its e-commerce business.

Cohen is not an activist but an extremely successful entrepreneur. Cohen is the co-founder and former CEO of e-commerce company, which he built up and sold to PetSmart in 2017 for $3.35 billion. Cohen remained CEO following the acquisition until March 2018, and in June 2019, Chewy went public at a valuation of $8.7 billion.

Sales have declined from $9.5 billion in fiscal year 2011 to $6.4 billion in fiscal year 2019; EBITDA has dropped from $839 million in 2011 to only $111 million in 2019; net income has fallen from $339 million in 2011 to a loss of $470 million in 2019; and in the two most recent quarters alone, the company lost another $277 million. All of this happened while the size of the global gaming market has grown by more than 2.5x since the last console cycle.

To do this, Cohen urges the company to cut excessive real estate costs, streamline or sell non-core operations in Europe and Australia and hire the right talent. While Cohen does not specifically target CEO George Sherman, he does note that Sherman has substantial experience working for large brick-and-mortar retailers such as

 

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ryancohen Tokenizedtweet 0x9155cd6eb7f07027b1dff5046a6b03a9d3c6a9c1

ryancohen

ryancohen Why can’t Amazon be the Amazon of video games lol

Nearly seven months later.

ryancohen Mel+Cita 🤥 Congress Gabe “not short cover&price went up” Cita 🤥 “short covering” time 140% SI IBKR stop trade, day before 50 mil avail Citadel+Mel “30 to 40 mil, Gabe “wasnt shorts cover” Hedge need 140% of all avail stock to cover, only 50 mil avail math ?

ryancohen RECOUNT GME SHARES!!

ryancohen tokenizedtweets 0xf3bABd067CAC2fD0e91E104128b316D28E4a98ea

ryancohen Tries?

ryancohen Sweet

ryancohen Ryan should be the next ceo if want to make gme fly.

ryancohen And with that welcome to chewy 2.0. The efficiency of amazon coming to gamestop. Thank you Ryan cohen and there goes another 10M investment.

ryancohen I believe in you señor Cohen 💪🏽

ryancohen tokenizedtweets 0xB7067Ab59365d7f4A265FA55b36f4a3Bc7BB8d97

ryancohen Killer fucking idea, would there be potential for in-person gaming tournaments to happen there also? Especially with video games and gambling becoming more and more prevalent? Microcenter type but you duel. Like a PokeMon arena.

ryancohen Do you still have a large stalk in apple?

ryancohen gme is big enough to do what amazon did and much more.

ryancohen We need a GME stock spilt once it hits 1K. We don't want to be Amazon trading for 3k+ a share. GME should be affordable for retail investors ;) Cya on the moooooon!

ryancohen GamePlan for GameStop (Part 2) - Hold local video game tournaments that eventually build up to an international tournament - Make new iterations of the console 16 bit, 32 bit, etc. and buy up new assets (make backwards compatible) - Have GameStop online show and documentary

ryancohen People didn’t believe, I had to sell to make life changing gains but I’ll be back after the bubble ... got in 8/13/19 getting back in TBD

ryancohen

ryancohen if

ryancohen Please also distribute the vaccine and invent time travel

ryancohen It is an exciting idea and he will pull it off, it could prove amazon can be challenged. Remember Amazon sells games and used games. Gamestop will succeed either way, so much room for modernization. A really smooth website would attract gamers who are strict connoisseurs.

ryancohen WeWantCohen

ryancohen like i said ryancohen edwardsylvan DONT FUCK WITH MY MONEY 978-340-7183 . ONLY THING IS MY ADDRESS DOESNT EXIST I THINK YOURS DOES

ryancohen Ryan, definitely want to see more investment in digital, more share buybacks.

ryancohen WeWantCohen

ryancohen In Cohen we trust

ryancohen open market sale, Sherman and Bell are taking poison pill to fend off Ryan Cohen.

ryancohen Is $gme a win for long term investors

ryancohen Dude please take over this company

ryancohen ryancohen I believe in you Ryan! Turn this ship around

ryancohen Fix the website and customer service its horrible.

ryancohen thank you for the money

ryancohen ryancohen As a $GME shareholder myself (albeit much less then 9.9%) I am grateful for the activist role u have taken at $GME. Ur possible connection is y I bought & added shares & ur letter was the highlight of my week:)TY 'He not busy being born is busy dying' Bob Dylan

ryancohen Super Mario just set another world record selling for $156K my plan for is 'EVERY GAME EVERY WAY' Sealed, Refurb, Graded, CiB, Cart Only, Manual Only, etc . I've sold seven figures in games at Amazon, eBay, Walmart, Mercari, etc. hit me up, hopper, MBA

ryancohen Boss Ryan obviously sees something about this business that most of us regular folks don’t. I’ve read his letter and believe he can transform GME into something far greater than it is today.

ryancohen This brand has so much potential given its unique position, looking forward to see ryancohen pushing it higher powertotheplayer

ryancohen Everyone here is missing the point. There will ALWAYS be a market for physical disc based games especially considering the file size these days to download plus people will prefer to buy physical when they cost so damn much now for a game.

I’m pretty sure Amazon is the Amazon of the video-game industry 🤦‍♂️

The problem is that it isn’t just about the shift from in person shopping. Games are now largely a digital product. The distribution differences and lack of a secondary market don’t seem to leave much room or margin for a middle man like $GME

That's not how videogame industry works anyway.

this is terrible news

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