In a surprising move, GameStop has terminated CEO Matt Furlong, the executive responsible for spearheading the company’s foray into nonfungible tokens (NFTs).
This decision comes months after GameStop decides to abandon its crypto initiatives due to poor financial performance.
GameStop announced the leadership shake-up on June 7, simultaneously promoting billionaire investor Ryan Cohen to the position of executive chairman. The company provided no specific reason for Furlong’s termination, but it is believed to be related to the underwhelming performance of GameStop’s NFT ventures.
CEO Furlong took the helm at GameStop after the memestock craze, overseeing the launch of an NFT marketplace that generated an impressive $2 million in sales on its first day. Sadly, enthusiasm faded rapidly, resulting in a staggering 99.8% decline in daily sales volumes within a few months.
The termination of Furlong coincided with GameStop’s first-quarter earnings call, where the company reported disappointing earnings per share that missed market expectations by over 133%. As a result, GameStop’s share price dropped 19% in after-hours trading.
Despite GameStop’s previous announcement to shift away from cryptocurrencies and NFTs, the company recently partnered with blockchain game developer Illuvium to introduce a 20,000-piece NFT collection. The implications of this partnership on GameStop’s future direction remain uncertain.
With Ryan Cohen assuming the role of executive chairman, GameStop aims to navigate its path forward in the ever-evolving gaming and retail landscape. The termination of Furlong signifies a shift in leadership and strategy, leaving investors and industry observers curious about the company’s next steps.