GameStop Looking To Make Board Of Directors Changes

GameStop has revealed that a major stockholder in it, Hestia Capital Partners LP, is looking to shake things up at the top. More specifically, it will nominate four different individuals for election to the company's Board of Directors during the upcoming 2019 Annual Meeting of Stockholders.

Hestia will not be alone in pushing the initiative, but it's said to be leading it. The investing company is said to own roughly 160,00 shares in GameStop's stock. GameStop issued the following statement in response to the development:

"GameStop welcomes open communications with its shareholders and values constructive input toward the goal of enhancing shareholder value. Over the past several weeks, members of GameStop's Board and the Company's advisors have had extensive correspondence and held multiple discussions with Hestia, Permit Capital, and their representatives to better understand their views."

As you may know, GameStop has been the subject of a lot of market chatter lately, as the company's future continues to seemingly tread on thin ice in a market that is sprinting towards and embracing the digital future.

In the past, GameStop offered to nominate one of Hestia's proposed candidates, but according to GameStop, Hestia declined the proposal for reasons not exactly clear.

As all of this Board of Directors hooplah plays out, GameStop says it has focused on increasing its market value by appointing retail industry veteran George Sherman as its new CEO. Further, it has been making moves to free up more financial flexibility going forward, and has also been working on new partnerships in the growing esports market. Whether any of this will pay off for it though, well, only time will tell.

With the retail video game market steadily shrinking, GameStop will need to continue to adapt and adapt fast. However, everything it has done so far seems to not be working, or at least not fast enough. In other words, something tells me we will be reading much more about GameStop and its investors in the near-future.

Anyway, as always, feel free to leave a comment letting us know what you think. Do you think GameStop is destined to collapse or will it survive and transition to something else?

Thanks, Variety.

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