GameStop raises $551 million to accelerate e-commerce push, shares jump
Company announces it has sold 3.5 million shares in the at-the-market offering
GameStop Corp has raised $551 million through an equity offering as the videogame retailer accelerates its shift to e-commerce, sending its shares 15% higher in extended trading on Monday.
The company, which was at the center of a Reddit-fueled trading frenzy earlier this year, said in a statement it had sold 3.5 million shares in the at-the-market offering.
GAMESTOP'S CEO IS GETTING MILLIONS ON HIS WAY OUT. HE'S NOT THE ONLY ONE.
Based on Reuters calculation, the average price of the shares sold was $157.43. The company's stock has gained more than 850% this year thanks to a push by retail investors to drive up prices of heavily shorted stocks.
GameStop said earlier this month George Sherman will step down as its chief executive officer in the biggest management shakeup at the retailer, giving top shareholder Ryan Cohen more control.
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Cohen, whose RC Ventures owns nearly 13% of GameStop, is leading the company's transformation into an e-commerce firm that can compete with big retailers such as Walmart Inc, as well as technology companies like Microsoft Corp and Sony Corp.