GameStop Investors Solicit for a Shareholder Nominated to the Company’s Board

Investors at American video game consumer electronics and gaming merchandise retailer GameStop Corp (GME) have rallied against the company asking it to draw one member from its shareholders and appoint them to the company’s board.

This comes at a time when an agreement between the company and its shareholders barring them from highlighting their plights in the public has just expired, the agreement ran for a whole year.

The agreement was signed during the first quarter last year after the company met some of the demand put forward by the investors.

The investors pushing for this agenda include; Permit Capital Enterprise Fund LP and Hestia Capital Partners LP together with their affiliates who collectively own about 7.5% stake in GameStop.

“We wholeheartedly believe that the difference between the Company’s current share price and the intrinsic value of GameStop, which we believe is in the high teens, will only be realized if the Company is properly governed,” read part of the letter authored by the investors.

In the beginning of this month Hestia and Permit had warned the company of dire consequences if the company fails to give dialogue a chance for both parties to discuss the best way possible to improve the fast declining business.

Experts in the gaming industry attributes the decline by the video game retailer to a switch to digital downloads whereby consumers download games or just stream them.