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Hedge Fund Tiger Sends Letter to Gamestop Urging Retailer to Adopt a Turnaround Plan

Retail giant GameStop is being urged by investors to conduct a strategic review following the sudden departure of CEO Michael Mauler.
According to a letter seen by CNBC, hedge fund Tiger Management described the recent upheaval as "an unprecedented opportunity" to overhaul the retailer's strategy and "revive shareholder confidence in the sustainability of the GameStop business model".

Despite the letter, Tiger maintains it's a passive shareholder and would simply sell GameStop shares if the company failed to "implement a turnaround plan."
The letter urges GameStop to pause destructive acquisitions, divest some businesses and buy back stock.

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chris235151d ago

dinosaurs are not able to adapt. it‘s in their nature to go extinct. gamestop, nintendo, physical data carriers... all on their way out.

Lovable151d ago

Chris are you on your way out too?

indyman7777151d ago

I have to point something out here. Hedge funds are KNOWS for shorting. Long story short (pund intended) When you short a stock you only make money if it goes DOWN. You lose money if it goes up. So If you send a letter to a company and cause their stock to go down from BAD publicity, and your shorting the stock YOU MAKE MONEY!

And yes it is legal to own $1 worth of a stock and short a million dollars worth of it.

TheCommentator151d ago

Nintendo is on their way out? I thought they were on pace to catch up to Xbox One sales by the end of this year.

I'm genuinely confused by how people measure success around here...

wonderfulmonkeyman150d ago

This is a heavily Sony-centric site.
You're bound to see the occasional loony that thinks Nintendo's about to die. Just treat their gloom-and-doom comments as the jokes they are and move on, I say.

TheCommentator150d ago

@ wonderful

Yeah, and there are many who think that about Xbox too.

I thought Nintendo was done for too when I first saw the Switch. The success of the system has taken me by surprise, to be honest, but I can admit that they are doing really well and don't continue believe in fallacies.

RyanShutup151d ago (Edited 151d ago )

Nintendo? dunno about that one bro... they've been adapting for over 100 years. They started off as a card company in the late 1800s.

Tross151d ago

chris235 Actually, studies suggest that dinosaurs were amazingly adaptable as evidenced by their ability to survive for many millions of years, so that doesn't actually work as a metaphor. Besides, I for one like physical games and will continue to support them as long as they're around. GameStop isn't all roses, I'll admit that. I also admit most of the games I buy intentionally come from Amazon whereas EB Games (the subsidiary of GameStop that operates here in Canada) is more a place I go for window shopping and the occasional impulse buy.

I also prefer to buy new copies to support devs and know that GameStop likes to sell used because they get all the profits and probably only paid some poor sap $3 to buy it from him/her. One time I bought an indie game with a physical release, and the guy at the counter said there's a copy that's several dollars cheaper, so he just grabbed a used copy without asking me and gave me that. Yeah, they're that good at selling their used copies. At least with Amazon I don't have that happen.

Still, it's good to have a store around that's still more or less dedicated to selling physical games. I say more or less because now it's also a store for Nerf stuff and My Little Pony plushies among other things, for reasons unknown. Maybe it is struggling as I miss the days when EB Games was just about games. I'm glad it's not gone though. That would only leave Best Buy for impulse buying and I don't find that the most ideal place to shop for games.

indyman7777151d ago (Edited 151d ago )

Every word of your post is correct!

Nintentional151d ago

Lmaoooo nice try stealth troll 😂😂 that’s why the Switch keeps leading sales charts

wonderfulmonkeyman150d ago

HAHAHAHA, this guy thinks Nintendo is on their way out when the Switch and 3DS are bringing them enough cash to open their own theme park attractions.
That's pretty damned funny delusion levels, right there.XD

+ Show (4) more repliesLast reply 150d ago
TheCommentator151d ago

Gamestop deserves it. You can tell every time you walk into a Gamestop that has their employees following the rules because everybody feels uncomfortable with the interactions to "welcome" you to Gamestop, including you.

Ironically, it's a store full of embarrassed robots that make the customers feel like they're just another person/payday and that's not what Gamestop used to be like. They're pushing gamers to hate going to their store in the first place. You get nothing for trade-ins on top of being harassed for 5 minutes every time you walk in like you've never seen a video game before.

Tross151d ago

For me it varies by location and by employee. Then again I live in Canada and deal with EB Games, but they're the same company. There are people who work at EB Games that I genuinely believe love their job and know their stuff. I wish I could say that was every employee at every location, but I can't. Not even close. Still, it's worth noting that not all of them are useless twats. I think I've met far more useless people at Best Buy, but maybe that's just at the location I shop at...or more accurately pass through since it's the entrance I use into the mall.

TheCommentator151d ago

I loved my job as an SM for a long time too. My DM was cool too and resisted for as long as he could, but eventually the RD started getting $#!+ for my DM's poor performance metrics and it all rolled downhill. I eventually left Gamestop a few years ago because I couldn't abide by the new rules (without feeling horrible about how the customers reacted) and it was only a matter of time before enforcement would have cost me my job. The store you shop at has unfortunately become the exception, not the rule.

Majin-vegeta151d ago

I here all these GS problems and ive been shopping there since i can remember and have yet to have a bad encounter.Whenever I do i just contact my local store manager talk to him and he fixes it right away.Not to mention he goes above and beyond for me.Recent example The BB Hunter Totaku collection Figure was/is hard to get a hold of within a 100 miles from me.He literally traveled about 2 hours just to get it from another GS store and put it aside from me.Not to mention he puts all the good condition items off to the side for me when it comes to collectibes.

Majin-vegeta151d ago

The ones who cry about next to nothing for trade ins are the ones who cant bother to check when they have specials for when to trade in.Literally all it takes is for you to sign up with your phone number and you can get notificaitons of when they have specials on games/trade ins going on.

Bruh150d ago

First and foremost, adapt a Gamers Club style program. Power Up Rewards Elite should absolutely do the 20% off for physical new titles. Next is price match, these are two basic components everyone uses. I get Gamestop is much smaller, but down sizing their inventory to keep their financials in tack and to lose potential customers is not a sound business plan for the future

wonderfulmonkeyman150d ago

If Gamestop had a video-game-focused rival, that wasn't also a mass-market chain with tons of other side things for sale like Best Buy, Target, etc etc, maybe they'd have done something to turn their business around.
Honestly, I hope they DO find a way to turn things around. Bring in more customers and give people more reasons to stop in on the regular instead of only on occasion.