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GameStop 'Leadership will not compromise when it comes to being maniacally focused on the long-term'

GameStop (GME) has filed a preliminary proxy statement Schedule 14A with the SEC, and CEO Matt Furlong included a letter to shareholders.

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GameStop has filed a preliminary proxy statement Schedule 14A with the SEC that describes all of the votes to be held at the GME annual meeting of shareholders. While the document doesn't provide a concrete date, there is a lot to unpack here. GameStop CEO Matt Furlong even included a letter to shareholders that ended with an affirmation that "Leadership will not compromise when it comes to being maniacally focused on the long-term."


Here's the entire statement from GameStop (GME) CEO Matt Furlong:

Letter from our Chief Executive Officer

Fellow Stockholders,

Thank you for your ongoing investment in GameStop.

The past year marked the beginning of a systematic transformation at GameStop. We installed a new management team, strengthened our balance sheet, hired hundreds of individuals with technology backgrounds and refocused the organization around a singular mission to delight customers. We also allocated a significant amount of capital to our commerce business to strengthen its fulfillment network, product catalog, systems, and online and mobile experiences following years of underinvestment.

Since last summer, we have also been making investments to insert GameStop into the blockchain gaming and cryptocurrency worlds. We have assembled a growing blockchain team, begun establishing accretive partnerships and started developing a marketplace for non-fungible tokens, which now represent an expanding $41 billion addressable market. Given our distinct connectivity to gamers, we have a unique opportunity to be a conduit between developers, publishers and consumers as gaming shifts from consoles to the metaverse and other new frontiers. We are focused on capitalizing on this opportunity, as it aligns with our efforts to continually expand GameStop’s universe of customers.

We believe the investments made in recent quarters represent the foundation of value creation that will become evident quarters and years down the road. In 2022, we will continue to make pragmatic investments to modernize our infrastructure, expand our addressable market and grow our customer base. Leadership will not compromise when it comes to being maniacally focused on the long-term.

Once again, thank you for your passion and support.

Sincerely,

Matt Furlong

Chief Executive Officer and Director


Since this is a preliminary proxy statement, some of the key dates are still left blank, but shareholders of record on April 8, 2022 are entitled to vote at the annual meeting. 

There are six items on the docket for the shareholder meeting:

  1. Elect six directors, each to serve as a member of the Board of Directors until the next annual meeting of stockholders and until such director’s successor is elected and qualified;
  2. Adopt and approve the GameStop Corp. 2022 Incentive Plan;
  3. Provide an advisory, non-binding vote on the compensation of our named executive officers;
  4. Ratify our Audit Committee’s appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending January 28, 2023;
  5. Approve an amendment to our Third Amended and Restated Certificate of Incorporation to increase the number of authorized shares of our Class A Common Stock (the “common stock”) to 1,000,000,000
  6. Transact such other business, if any, as may properly come before the annual meeting and at any postponement or adjournment of the annual meeting.
GameStop's board of directors provided recommendations for each vote to be cast at the annual meeting of shareholders.
GameStop's board of directors provided recommendations for each vote to be cast at the annual meeting of shareholders.

GameStop reiterated that there are 76,347,215 GME shares outstanding that are entitled to vote. While we have no concrete date for the shareholder meeting, it will be held some time in June according to the filing. Stockholders will be able to vote via Virtual Attendance, over the Internet, by telephone, and even by traditional snail mail. Once again, stockholders of record as of the close of business on April 8, 2022 are entitled to make their voices heard.

Most of the meeting will feature pretty standard issues, but the upcoming GME stock split has many investors excited. GameStop will be updating this Schedule 14A filing as the meeting's date solidifies, and we will be sure to keep all of our readers up-to-date as the news breaks.


This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

Full Disclosure:

At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:

Long GameStop via GME shares (partially-hedged with out-of-the-money put options)

Long GameStop via GME call options

Luminary

Asif Khan is the Luminary and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

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