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Gamestop Urges Shareholders to Reject Activists' Claim for Board Seats

By Yasin Ebrahim 

Investing.com - Gamestop fell in after-market hours Tuesday after the video game retailer urged shareholders to back its board nominees rather than those proposed by activist investors Hestia Capital Partners and Permit Capital Enterprise Fund.

GameStop (NYSE:GME) was down nearly 1% postmarket.

Insisting that the activist investors would add no value at boardroom level, the company said "Messrs. Wolf and Evans’ lack of retail and video game experience disqualifies them from serving on GameStop’s board, as they would be ill-prepared to advise on the strategic and operational issues facing specialty retail companies in this turbulent market environment."

The battle for seats on the board comes at a time of transformation for the retailer as consumers have shied away from buying games in retail shops, moving toward online.

"Over the last two years, we have comprehensively refreshed our Board to oversee our business transformation strategy – GameStop Reboot. Our refreshed Board benefits from the fresh perspectives of our newest directors and the institutional memory of our longest-serving directors, all of which is critical to our successful execution of this transformation plan," Gamestop said.

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