GameStop seeks shareholder nod for stock split

Video game retailer GameStop Corp said on Thursday it would seek shareholder approval to increase its number of shares and enable stock splits in the form of dividends and “provide flexibility for future corporate needs.”

One of the biggest beneficiaries of a “meme-stock” retail-trading frenzy that began to disrupt global economies after pandemic-related lockdowns, GameStop shares rose from nearly $3 in March 2020 to near $165 on Thursday. exceeded.

Shares of the company jumped 19% to $198.50 in after-hours trading on Thursday.

Tesla Inc.’s market capitalization exceeded $80 billion on Monday, the electric-car maker said Monday it would seek investor approval to increase its number of shares to enable future stock splits, without saying when the split. It is possible.

Alphabet Inc., Inc. and Apple Inc. are among other big tech companies that have split their shares in recent days.

Companies split their shares so that their share prices appear less expensive and attract more investors. However, splitting a stock does not affect its underlying fundamentals.

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GameStop plans to increase the number of its outstanding Class A common shares from 300 million to 1 billion, it said in a filing. The company will also ask shareholders to vote on the incentive plan “to support future compensatory equity issuances.”

The date and venue of the company’s annual shareholders’ meeting have not been announced yet.

Billionaire Ryan Cohen, chairman of the board of GameStop, revealed earlier this week that his investment company has bought 100,000 shares of the game retailer. The purchase took Cohen’s total ownership of GameStop to 11.9%.

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