GameStop Chief Undergoes Brain Tumor Surgery
GameStop Corp, the world's largest retailer of videogame products, said Chief Executive Paul Raines underwent an unexpected surgery last week for a small cancerous brain tumor.
Raines, who will be undergoing chemotherapy, will restrict his travel during the expected six week of treatment, the company said in a regulatory filing on Tuesday. (http://1.usa.gov/1BxwaFG)
GameStop also said the six-week treatment period will not interfere with Raines' "continued leadership" of the company.
Raines, 50, was GameStop's chief operating officer from September 2008 to June 2010 before moving into his current role, according to the company's website.
The company is unlikely to bring in an interim CEO as Raines' treatment lasts only weeks and not months, Wedbush Securities analyst Michael Pachter told Reuters in a mail.
Since Raines took over as CEO, GameStop's shares have nearly doubled. But the stock has lost some of those gains this year as game software sales remain weak at a time when the company's used-game business, its most profitable, faces new competition from Wal-Mart.
During the treatment period, some of Raines' duties may be taken over by President Tony Bartel and Chief Financial Officer Rob Lloyd, SunTrust Robinson Humphrey Capital Markets analysts David Magee wrote in a note.
"... We view his (Paul Raines') expected timely return (later this fall) as important to GameStop's ongoing success," Magee added.
The company is scheduled to report second-quarter results on Aug. 21.
GameStop's shares were marginally up at $41.05 by midday. They closed at $40.65 on the New York Stock Exchange on Tuesday. (Reporting By Lehar Maan in Bangalore; Editing by Joyjeet Das and Saumyadeb Chakrabarty)