GameStop Corp. (GME) got a push of more than 27% on Monday after investment news emerged. RC Ventures LLC on Monday unveiled that it now owns 9% stakes in the retail gaming company.
The investment firm has been managed by the Chewy.com co-founder Ryan Cohen. The firm disclosed the ownership of 5.8 million shares of GameStop. This comprises about 9% of the video-game retailer which is going through a hard time. Data reviewed by Bloomberg indicates that RC Ventures is now the third-largest holder in GameStop. BlackRock Institutional Trust Company, N.A. is the largest stakeholder in GameStop with 15.31% ownership. On the second place is Fidelity Management & Research Company LLC for having hold over 14.72% of the stake.
Cohen previously co-founded online firm Chewy in 2011. He ran the pet-supply company till it was acquired by PetSmart in 2017 for $3.3 billion. The company later on went public last year and has currently worth of about $23 billion.
That’s why news of investment by Cohen-led firm added $6.82 to each share of GameStop on Monday. The gain by stock of struggling company was biggest after the April 14. The company came losing nearly 11% from start of this year till last week.
GameStop is operator of a retail chain of game stores. It has been struggling in the face of online era. Running through brick-and-mortar gaming facilities, GameStop failed to adapt to shift of the industry to online distribution. Sony Corp is the maker of PlayStation which apparently get the market saturated. But earlier last month, development and launching of new generation of console by Sony raised the hopes of GameStop. The news also remained encouraging for the GameStop investors. GameStop is now hoping getting the benefit of that new console launching this year.
At start of Tuesday trading, GameStop was still trending upward with gain of 4.50%.