GameStop is looking for a new CEO, Reuters reported Monday, as billionaire activist investor Ryan Cohen leads the charge to shift the company away from brick-and-mortar sales and into an e-commerce giant.
According to Reuters, GameStop’s board wants to replace CEO George Sherman with a candidate who has less experience at brick-and-mortar businesses, since Sherman’s has spent his career at companies such as Home Depot, Best Buy and Advance Auto Parts.
The change comes as Cohen, the former CEO of online pet supply retailer Chewy, gains more power inside the company with the purpose of pivoting GameStop’s business away from sales at physical stores.
Though GameStop shares have skyrocketed this year amid the Reddit-fueled trading frenzy, the company’s stock dipped 10% on Monday, representing its sixth straight day of losses, after Ascendiant Capital Markets analyst Edward Woo downgraded the stock from buy to hold and questioned the company’s long-term business prospects.
GameStop did not immediately respond to a request for comment from Forbes.
The CEO shakeup would be the most significant since Cohen became GameStop’s largest shareholder last year. Since then, he’s made it his mission to turn GameStop into a technology company rather than a video game retailer with a brick-and-mortar footprint. Cohen has already slammed the company’s leadership for failing to embrace technology, criticisms that lead to the ouster of former CFO Jim Bell and a slew of new hires from Amazon, including AWS vet Matt Francis as chief technology officer. Cohen will take over as chairman of GameStop’s board after the company’s annual shareholder meeting on June 9.