Gamestop chief executive now worth $1bn but stays quiet amid trading frenzy

George Sherman only joined retailer in 2019 but his 2.36m shares now worth an estimated $800m

Joe Sommerlad
Friday 29 January 2021 16:26

Related video: ‘Wolf of Wall Street’ Jordan Belfort weighs in on Reddit investors buying GameStop stock

Leer en Español

The chief executive of GameStop, the ailing video games retailer caught up in a bizarre trading battle between mighty Wall Street hedge funds and self-organised Reddit users, has reportedly seen his personal worth climb to almost $1bn as a result of this week’s short squeeze frenzy.

George Sherman has largely remained silent on his company’s soaring stock price but its uptick in fortunes means his own 3.4 per cent stake of amounting to 2.36 million shares is now worth an estimated $800m (£583m), according to CNN.

His shares were worth $7m (£5.1m) a year ago but their value had climbed to approximately 127 times that as of Friday as stocks in the company hit $379 (£276) in pre-market trading.

Mr Sherman only joined the company in 2019 having previously worked as an executive for other retail outfits like Advanced Auto Parts, Best Buy, Home Depot and Target.

Another GameStop board member, Ryan Cohen, operates a fund with an almost 13 per cent stake in the company, which is currently worth $3bn (£2.2bn), while retired billionaire Donald Foss, founder of subprime auto lender Credit Acceptance Corp, now finds his 5 per cent holding valued at $1.2bn (£880m.)

Money managers Fidelity, BlackRock, Vanguard and Susquehanna are likewise major shareholders.

The chaos began on Wednesday when a volunteer army of investors on social media challenged the big institutions that had placed market bets on GameStop’s stock falling, coming together to punish short-stellers for seeking to profit from the financial woes of a beloved brand.

The company’s stock price duly rocketed from a low of $2.57 (£1.87) on 31 December 2020 to close at around $350 (£255) on Wednesday thanks to the intervention of followers of the WallStreetBets Reddit forum.

On Thursday, it swung between $112 (£82) and $483 (£352) before closing down 43.2 per cent at $197.44 (£143) and shooting back up 60 per cent in after-market trading.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies


Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in