(Reuters) - Ryan Cohen, the biggest individual investor in GameStop GME.N and co-founder of e-commerce firm Chewy Inc CHWY.N, is pushing the videogame retailer to conduct a strategic review, the Wall Street Journal reported on Monday, citing a letter sent to the company's board.
Cohen said GameStop's bricks-and-mortar-centric business model is outdated and lags behind the broader industry, the report said here. Shares of the company dropped 4% after the bell.
Earlier in September, Cohen had raised his stake in GameStop to nearly 10% from 9.6% and disclosed that he was in active discussions with the company’s management and board members.
Cohen is urging the company to reduce the number of physical stores, focus on improving e-commerce and explore other tech-driven opportunities in areas such as esports, mobile gaming and game streaming, according to the report.
GameStop did not immediately respond to a Reuters request for comment.
Reporting by Ayanti Bera in Bengaluru; Editing by Shailesh Kuber
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