GameStop is splitting the chairman and CEO functions as part of a management reorganization, announced Friday, designed to meet the challenges of fast growth amid the video game retailer's brand expansion into 16 countries.
As part of the changes approved by the board, R. Richard Fontaine, chairman and CEO since the company's inception in 1996, will relinquish his CEO title to the company's operating chief, Daniel A. DeMatteo, 60, who has been the chief operating officer since 1996 and vice chairman and COO since 2004.
Fontaine, 66, will focus on international operations, acquisitions and strategic development as executive chairman.
New COO From Home Depot
"Dan's move into the CEO role will assure the continuity of performance that has been a GameStop hallmark," Fontaine said in a statement. "His leadership, drive and insight into the video game business and its huge upside potential make him the obvious choice as CEO."
In addition, J. Paul Raines, 44, the former executive vice president of U.S. stores for the Home Depot (NYSE: HD) 
, will become the company's new COO, effective Sept. 7.
GameStop's senior executive team will continue to include 12-year company veteran David W. Carlson, 45, as executive vice president and chief financial officer, and Tony D. Bartel, 44 -- who joined the company in 2004 -- as executive vice president of merchandising and marketing.
Bright Outlook
On Aug. 21, GameStop raised its earnings outlook for the fiscal year, based on stronger-than-expected second-quarter results.
The Grapevine, Texas, company believes that unprecedented growth of new video game hardware during 2007 and 2008, combined with significant industry investment and a promising title lineup, will drive new video game software sales to double-digit growth. It operates more than 5,500 stores worldwide.
In morning trading, shares rose 15 cents to US$44.24.
© 2008 Associated Press. All rights reserved.
© 2008 ECT News Network. All rights reserved.
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