Shares of GameStop Corp. GME,
shot up 10.2% in premarket trading on Monday, after the video game retailer announced an agreement with activist investor RC Ventures LLC, immediately adding three members to its board of directors. One of the new board members is Ryan Cohen, the manager of RC Ventures, GameStop’s second largest shareholder with 13.8% of the shares outstanding, according to data from FactSet. Cohen was also founded and was previously the CEO of Chewy Inc. CHWY,
“We appreciate the constructive dialogue we’ve had with Ryan over the past few months,” said George Sherman, GameStop’s Chief Executive. “Together we have achieved an outcome that is in the best interest of all shareholders and may enable GameStop to accelerate efforts to deliver more value to the company.” Separately, GameStop said same-store sales for the 9-week holiday period ending January 2 were up 4.8% from a year ago. Net sales for the period decreased 3.1% to $ 1.77 billion, as strong demand for game consoles was offset by store closures, while e-commerce sales increased 309% to approximately 34% of total sales . The stock is up 47.2% over the past three months to Friday, while the S&P 500 SPX,
has gained 10.0%.