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Why GameStop Stock Jumped on Tuesday

By Daniel Sparks - Mar 10, 2020 at 3:34PM

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Investors seem to like the gaming retailer's board shakeup.

What happened

Shares of GameStop (GME -1.04%) jumped on Tuesday, rising 13.8% as of 2:53 EDT.

The stock's gain follows news that GameStop is appointing new people to its board of directors, including former president and COO of Nintendo of America Reggie Fils-Aime.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

In addition to Fils-Aime, GameStop added William Simon and James Symancyk to its board of directors.

"GameStop's three new directors are highly qualified and collectively bring deep experience and expertise in retail, turnaround, consumer products, gaming and finance that are relevant to the Company's business, ongoing turnaround and strategic plan to drive long-term shareholder value," management said in a press release.

GameStop also said four directors -- Dan DeMatteo, Gerald Szczepanski, Larry Zilavy, and Steve Koonin -- are retiring for the board as of June 2020. Furthermore, current directors Jerome Davis and Tom Kelly are retiring from the board effective June 2021.

Now what

GameStop CEO George Sherman said these changes to its board, along with refreshed board governance enhancements, will help the company evolve its business strategy to maximize value creation.

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