GameStop filed their proxy statement today, setting the date for their annual stockholder meeting. It will take place on Wednesday, June 09, 2021 at 10:00am. All stockholders of record on April 15, 2021 will be invited to attend the meeting and asked to vote elect new directors to serve as members of the board and more. See the statement from the Senior Vice President below.

Notice of Annual Meeting of Stockholders:

Dear Stockholder:

We invite you to attend our Annual Meeting of Stockholders on Wednesday, June 9, 2021 at 10:00 a.m., Central Daylight Time, at our corporate headquarters located at 625 Westport Parkway, Grapevine, Texas 76051. At the annual meeting, you will be asked to:

(1) Elect six directors, each to serve as a member of the Board of Directors until the next annual meeting of stockholders and until such director’s successor is elected and qualified;

(2) Provide an advisory, non-binding vote on the compensation of our named executive officers;

(3) Ratify our Audit Committee’s appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending January 29, 2022; and

(4) Transact such other business, if any, as may properly come before the annual meeting and at any postponement or adjournment of the annual meeting.

Only stockholders of record as of the close of business on April 15, 2021 (the “record date”) are entitled to vote at the annual meeting and any postponement or adjournment thereof. Please see pages 9 – 12 for additional information regarding attendance at the meeting and how to vote your shares. This proxy statement provides information that you should consider when you vote your shares.

Your vote is important. Even if you plan to attend the annual meeting, we request that you vote your shares as soon as possible by following the voting instructions contained in this proxy statement.

By order of the Board of Directors.

Sincerely,

April 22, 2021

Dan L. Reed

Senior Vice President, General Counsel and Secretary

Outstanding Shares and Institutional Ownership

On pages 33-34 they list the number of outstanding shares and all of the institutions who own more than 5% of the outstanding shares:

The total number of shares of our common stock outstanding as of April 15, 2021 was 70,771,778.

Institutional Ownership

  • BlackRock, Inc. – 9,217,335 shares
  • RC Ventures LLC – 9,001,000 shares
  • The Vanguard Group – 5,162,095 shares
  • Senvest Management, LLC – 5,050,915 shares
  • Maverick Capital, Ltd. – 4,658,607 shares
  • Susquehanna Fundamental Investments, LLC – 4,409,467 shares
  • Dimensional Fund Advisors LP – 3,934,919 shares

That adds up to 41,634,138 total shares owned by these institutions. If we substract that from the outstanding shares we get 29,137,640 shares left. This is only the top institutions that own > 5% of the company. According to Yahoo Finance, there are a total of 310 institutions holding GME at the moment. We should also include the 2,478,117 shares owned by insiders. Subtracting that from our total leaves us with 26,659,523 shares. This is not even counting over 300 institutions and retail investors and we’re already almost out of shares.

The Short Squeeze

It should be safe to say that the remaining institutions own all or the majority of the remaining 26,659,523 shares calculated above, and they could potentially own more than that. There have been a lot of questions and discussion online regarding the accuracy of the reporting when it comes to the true short interest. I’ll stick to what we know as fact, but it’s worth mentioning. So what about retail investors? How is it possible that more shares than there are available have been bought by institutions without even factoring in how may shares retail investors own? GameStop has been the most talked about stock for almost the entirety of 2021. Retail traders have been buying the stock in large quantities for months, there are clearly a large number of shares being traded that don’t actually exist. This is setting up for a massive short squeeze with the right catalyst, which might be a share recall.

In order for shareholders (institutions and retail) to vote during the annual board meeting, they must recall their shares. If a big institution like BlackRock decides to recall their shares, all of their short sellers must cover their positions. However, as calculated earlier in the post, there aren’t actually any real shares for the short sellers to buy and cover with. This creates a huge problem for them, because they will be forced to buy shares at whatever market price they can get. Other short sellers will follow as they get margin called, creating a domino effect. A massive supply and demand issue will be created and it will send the stock to the moon!

The Transformation

A potential short squeeze is not the only thing to be excited about either, there’s also the plans to transform the company into and E-Commerce powerhouse. The effort will be led by Chewy’s Ryan Cohen and the new board members he has chosen. Here’s a quote from the CEO George Sherman:

As we move forward in 2021, we are focused on transforming GameStop into a customer-obsessed technology company that delights gamers. We are working to create a differentiated customer experience that positions us to access new customers, further engage with existing ones and reactivate former ones, while also focusing on initiatives that drive customer lifetime value. The strategic initiatives that support our goals include:

  1. Investing in technology capabilities, including our E-Commerce presence, systems and customer insights gathering.
  2. Building a superior customer experience, including by establishing a U.S.-based customer care operation.
  3. Expanding our product catalogue and addressable market. Certain emerging categories represent natural extensions that we believe our customers expect from us.
  4. Growing our distribution footprint fulfillment operations to improve speed of delivery and service. This will enable us to provide customers convenient, flexible, and competitive delivery options across the entire product spectrum.

We expect to accelerate these and other elements of our transformation while continuing to capitalize on the new console cycle. We believe the progress we have made over the past two years positions GameStop for long-term growth and to deliver value for stockholders. As your fiduciaries, GameStop’s Board remains committed to enhancing value for our stockholders. We appreciate your support of management and the newly refreshed Board as they work to continue to create value for all stockholders.

3 thoughts on “GameStop Files 14A – Sets Date for Stockholder Meeting & Reveals Massive Institutional Ownership

  1. Hello!

    Curious to know how many people you expect to show up for this meeting of shareholders and what the minimum amount of shares you need to own in order to participate. Thanks in advance!

    Sincerely a retail investor ape,
    Tiffany Darby

    1. Hi Tiffany!

      It’s hard to say how many will show up, this year is not like any other. I’d expect a much larger turnout than normal, especially if the short squeeze happens before then. I know I’ll be there! You only need share to participate.

      Thanks for reading!

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