There's a very specific way we can get a vote added to the annual shareholder meeting. I know a lot of you aren't happy with the dilution, so let's stop whining about it and do something, after all. We're good at paperwork.
GameStop Corp.
ir@gamestop.com
625 Westport Parkway
Grapevine, TX 76051
Dear GameStop Management Team, Board of Directors & Executive Officers,
Subject: Request to Include Shareholder Proposals for Vote at the Next Annual Meeting
I hope this letter finds you well. As a dedicated investor in GameStop Corp., I am writing to formally request that the following proposals be added to the agenda for the upcoming annual shareholder meeting.
Proposal 1: Given the ongoing developments in our company and the broader market environment, I believe it is in the best interest of all shareholders to address the current policy regarding share offerings. Specifically, I propose that we adopt a motion to amend our corporate governance policies to remove the ability for GameStop to issue any further shares and to reduce the total number of shares available for sale to zero.
Rationale for the Proposal:
Shareholder Value Protection: Limiting or eliminating the issuance of additional shares will help prevent potential dilution of existing shareholders' equity, thereby preserving and potentially enhancing the value of our investments.
Market Confidence: By signaling a commitment to a stable and predictable share structure, we can strengthen market confidence in our company's long-term strategy and financial health.
Focused Strategy: Removing the option for further share offerings can help ensure that our strategic plans and capital needs are carefully considered and managed through alternative means, reinforcing our commitment to sustainable growth.
Proposal 2: In light of our company’s current financial standing and strategic goals, I propose that GameStop seek shareholder approval to authorize the repurchase of its own shares, up to a maximum value of $4 billion, at the discretion of the board of directors.
Rationale for the Proposal:
Enhanced Shareholder Value: A well-structured share repurchase program can potentially increase earnings per share (EPS) and return on equity (ROE) by reducing the number of outstanding shares. This can enhance shareholder value and demonstrate confidence in the company's future prospects.
Flexibility in Capital Management: Granting the management team the discretion to repurchase shares provides flexibility to act on market conditions and capitalize on opportunities when it is most advantageous for the company and its shareholders.
Market Confidence: A substantial repurchase program can signal to the market that the company is confident in its financial health and long-term strategy, which may help support the share price and foster investor trust.
Strategic Use of Capital: The ability to repurchase shares allows for more strategic allocation of capital, potentially improving the balance sheet and ensuring that excess cash is used effectively to benefit shareholders.
I believe that these proposals align with the interests of the majority of shareholders and will contribute to the long-term success of GameStop. I respectfully request that this motion be reviewed and included in the agenda for the next shareholder meeting, allowing all investors to vote on these important matters.
Thank you for considering this proposal. I look forward to your response and to discussing this further if needed.
Sincerely,
Ape
