GRAPEVINE, Texas, May 26, 2020 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME) (the “Company”) today issued a letter to stockholders highlighting its comprehensively refreshed Board of Directors that possesses the diverse array of perspectives and requisite skillsets, including deep industry and institutional knowledge, to execute the transformation and continued growth of its omni-channel video-game business. The letter notes that Hestia Capital Partners, LP and Permit Capital Enterprise Fund, LP have nominated two candidates who lack the qualifications or experience to serve on GameStop’s Board of Directors. The letter urges stockholders to use the BLUE proxy card to vote “FOR ALL” of GameStop’s 10 highly qualified director nominees in connection with the Company’s upcoming Annual Meeting of Stockholders (the “Annual Meeting”) to be held at 8:00 a.m. CT on June 12, 2020.
The full text of the letter from the Company follows:
May 26, 2020
Dear GameStop Stockholders,
You will face a decision that poses significant implications for the future of our Company at our 2020 Annual Meeting of Stockholders scheduled for June 12, 2020 (the “Annual Meeting”). Hestia Capital Partners, LP and Permit Capital Enterprise Fund, LP (“Hestia Capital” and “Permit Capital,” or collectively, the “Dissident Stockholders”) are running a costly and distracting proxy fight, founded on baseless claims and significant misrepresentation of facts, in an attempt to remove two highly qualified, independent directors who bring valuable experience, institutional knowledge and continuity to the Board.
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. The Dissident Stockholders’ proposal to install two unqualified nominees that lack industry-related acumen and expertise would add nothing to our Board and would only jeopardize the Board’s ability to continue to execute on its business transformation plan and its ability to create long-term value for stockholders.
The Dissident Stockholders have put forth a number of rationales for running their wasteful campaign, but their actions make it clear they are only motivated by self-interest. The Dissident Stockholders claim they want a stockholder representative, but Hestia Capital’s founder, Kurtis Wolf, has rejected settlement offers to avoid a proxy fight that would have included a stockholder representative simply because he was not the stockholder representative. These are also the same Dissident Stockholders who supported a reckless share buyback of $500 to $700 million in 2019 despite the fact the Company had an upcoming $350 million debt maturity. The Dissident Stockholders’ motivations are clear: a vote for the Dissident Stockholders is a vote for Mr. Wolf’s pocketbook at the expense of ALL stockholders.
GameStop’s Board urges you to protect your investment by discarding any White proxy card you may receive from the Dissident Stockholders and use the BLUE proxy card to vote “FOR ALL” of GameStop’s 10 superior director nominees.
The Dissident Stockholders’ Nominees Add No Value to Our Board
In contrast to GameStop’s directors, who possess strong financial, operational, retail, video game, and omni-channel experience, among other relevant skills, the Dissident Stockholders have nominated two candidates who do not possess the qualifications necessary to complement GameStop’s Board or execute the Company’s ongoing transformation plan.
The Choice is Clear- Please VOTE on the BLUE Proxy Card
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR ALL” OF YOUR BOARD’S 10 NOMINEES USING THE ENCLOSED BLUE PROXY CARD.
Vote your shares FOR ALL of the 10 director nominees proposed by your Board, via the Internet or telephone or by mail by promptly marking, signing and dating the enclosed BLUE proxy card and returning it in the enclosed postage-paid envelope.
Please do not return or otherwise vote any White proxy card sent to you by the Dissident Stockholders.
No matter how many shares you own, your vote is extremely important. Please act today and make your voice heard regarding the future of the Company by supporting your Board and management team.
We believe that GameStop’s highly qualified and experienced Board of Directors is best positioned to oversee the continued successful execution of GameStop’s Reboot plan and deliver substantial value to ALL of our stockholders. On behalf of the Board of Directors and our management team, thank you for your continued support and your investment in GameStop.
Sincerely,
GameStop Corporation
