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Market News

GameStop sinks as CEO Michael Mauler abruptly ends 3-month stint

The ongoing leadership crisis at GameStop (GME) took a new turn Friday when CEO Michael Mauler stepped down after holding the post for just three months. Mauler, who took the reins of the video game retailer in February following the departure of Paul Raines, left abruptly citing personal reasons. The stock lost more than 2% […]

May 11, 2018 2 min read
Market News

The ongoing leadership crisis at GameStop (GME) took a new turn Friday when CEO Michael Mauler stepped down after holding the post for just three months. Mauler, who took the reins of the video game retailer in February following the departure of Paul Raines, left abruptly citing personal reasons. The stock lost more than 2% […]

· May 11, 2018

The ongoing leadership crisis at GameStop (GME) took a new turn Friday when CEO Michael Mauler stepped down after holding the post for just three months. Mauler, who took the reins of the video game retailer in February following the departure of Paul Raines, left abruptly citing personal reasons. The stock lost more than 2% subsequent to his resignation.

Daniel DeMatteo, executive chairman and one of the co-founders of the company, will assume the additional responsibilities of CEO on an interim basis. During his career with GameStop, spanning more than two decades, DeMatteo held various key roles including that of CEO.

Mauler served GameSpot for 16 years before leaving, and was a member of its board of directors. The company has not disclosed the exact reason behind Mauler’s departure, while it is learned he is not entitled to any severance or separation benefits.

“Given my tenure and familiarity with the company and our associates, it’s a natural step for me to assume this role and guide the business at this time while the board searches for a permanent CEO,” said DeMatteo.

It was DeMatteo who succeeded former CEO Paul Raines when he left the company after a prolonged medical leave. Raines passed away after few months of his departure.

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Mauler, who took the reins of GameStop in February following the departure of Paul Raines, left abruptly

Currently, GameStop is in an important phase of transition from a brick-and-mortar operator into a digital game retailer. Recently, mounting losses had forced the company to adopt stringent cost-cutting measures that included the closure of as many as 150 stores. And, it is crucial for GameStop to find the right replacement for Mauler to sail through the difficult time. When the company reported fourth quarter results in late March, it provided weak outlook for the year.

Trading in GameStop shares was halted temporarily following the report. The stock, which traded below its long-term average for several months, opened lower on Friday and continued to drop as investors gave a thumps down to Mauler’s departure.

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