Chewy's Ryan Cohen Sees GameStop Rivaling Amazon Long-Term

GameStop Corp GME could be extending its e-commerce line beyond video games and related consumer electronics products if a plan put in motion by its largest individual investor is realized.

What Happened: RC Ventures founder Ryan Cohen is in talks with the company management to poise itself as Amazon Inc’s AMZN rival in the e-commerce space, according to Bloomberg.

Cohen holds about shares 10% in the video game company, making him the largest individual investor in the gaming company. Whereas BlackRock Institutional Trust Company BLK and Fidelity Management & Research Company LLC are the leading institutional investors holding 15.31% and 14.72%, respectively.

Although Cohen’s plans are not yet made public, Bloomberg learned that the billionaire entrepreneur wants to expand GameStop’s online retail business. It may also expand into the logistics of shipping its products directly to customers.

In early September, CNN reported that the consumer electronics retailer is in plans to close around 400 to 450 stores worldwide this year.

Why Does It Matter: Cohen may be trying to save GameStop from a fate similar to Blockbuster Video, Bloomberg noted. Blockbuster Video lost out on business with the growing popularity of the online streaming giant Netflix Inc NFLX.  

Cohen's experience in the e-commerce sector goes far back, as he started Chewy Inc. CHWY in 2011. After six years of operations, Chewy’s business was acquired by PetSmart for over $3 billion. Currently, the Florida-based company has a market cap close to $21.6 billion.

Price Action: After a 7.41% downward spiral during trading hours, GME shares rebounded 9.26% in the after-hours trading session at $9.56.

Photo by Dwight Burdette via Wikimedia

Posted In: Bloombergconsumer electronicse-commercegamingRC VenturesRyan CohenNewsManagementTechMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.