Ryan Cohen

Last updated

Ryan Cohen
Ryan Cohen 2019 (cropped).jpg
Cohen in 2019
Born1986 (age 38–39)
Montreal, Quebec, Canada
Occupations
  • Entrepreneur
  • activist investor
Known forFounder and CEO of Chewy (2011–2018)
Executive Chairman of GameStop (2021–present)
CEO of GameStop (2023–present)
Signature
Ryan Cohen Signature.jpg

Ryan Cohen (born 1986) [1] is a Canadian entrepreneur, business executive and activist investor. [2] [3] He founded e-commerce company Chewy in 2011, and was the company's chief executive officer (CEO) until 2018. Cohen is the chairman and CEO of GameStop. [4] [5]

Contents

Cohen has been dubbed the "Meme King" for his influence on meme stocks such as that of Gamestop. [6] [7]

Early life

Cohen was born to a Jewish family in Montreal. [8] [9] He never attended college, citing his father, who ran a glassware company, as his primary inspiration in pursuing an entrepreneurial route. [10] His father died in December 2019. [9]

Career

At the age of 15, Cohen started his first business collecting fees off referrals to various e-commerce sites. In 2011, at the age of 25, Cohen founded Chewy under its original name of MrChewy. [11] Cohen says his inspiration for picking the pet category came from his experience shopping for his poodle Tylee. [12] He cites his father Ted, who ran a glassware importing business, as a mentor. [13] [14] To grow Chewy, Cohen used Amazon’s guidelines for supply chain, logistics and the convenience of shopping online but added a focus on customer service, including hand-written holiday cards, pet portraits, and flowers for deceased pets. [13] In need of capital, Cohen says he originally approached over 100 venture capital firms and was rejected by all of them. [15] [16] In 2013, Cohen secured the company's first outside investment from Volition Capital for $15 million. [17] By 2016, he had raised capital from investors including BlackRock and T. Rowe Price New Horizons Fund. [18] That year the company had $900 million in sales and had become the number 1 online pet retailer. [19] By 2017, he raised $350 million and was preparing for an IPO. [20]

In April 2017, PetSmart purchased Chewy for $3.35 billion in the largest e-commerce acquisition of all time. [20] Chewy’s value was credited in part to the company’s relationship with its customers, from handwritten thank you and holiday cards to committing nearly one sixth of its employees to 24-hour customer service. [11] [21] That year Fortune named Cohen one of its "40 under 40" [22] and Vox named him to its Recode 100 list. [23] Cohen remained CEO following the acquisition and operated the business largely as an independent unit of PetSmart. [19] He grew the business to 3.5 billion in revenue in 2018, including 66% of sales coming from customers signed up for automatic recurring shipments, [20] prior to stepping down as CEO to pursue personal goals and spend time with his family. [24] In June 2019, Chewy went public at a valuation of $8.7 billion. [25]

In January 2021, Cohen joined the GameStop board along with two Chewy executives. [26] Cohen was also appointed chairman to lead a new committee in charge of a company-wide transformation. [27] Cohen's appointment triggered a stock rally; within two weeks the stock had increased by 1,500% resulting from a short squeeze. [28] Since then, Cohen has been instrumental in a number of changes at GameStop, [29] including the departure of multiple executives and ten members of the board of directors, [27] and the hiring of multiple Amazon and Chewy executives in leadership positions. [30] He became chairman following the annual shareholder meeting. [9] [31]

On September 28, 2023, Cohen took over as Chief Executive Officer of GameStop. He is receiving no salary for his roles as CEO and chairman. [32] [33]

Investments

Following the sale of Chewy, Cohen made a significant investment in Apple, making him the largest individual shareholder of the tech company with 1.55 million shares (6.2 million split-adjusted shares as of August 31, 2020). [2] [34]

In September 2020, Cohen disclosed a near 10% stake in GameStop, [35] making him the company's biggest individual investor. This was later increased to 12.9% on December 17, 2020, through an amended 13D filing with SEC. [36] According to these filings, Cohen's firm, RC Ventures, has expressed willingness to get more involved with the company in order “to produce the best results for all shareholders." [37]

In March 2022, it was disclosed that Cohen had a near 10% stake in Bed Bath & Beyond, through his investment company RC Ventures LLC. [38] Between August 15 and 18, his firm sold all of the stock, totaling 9.45 million shares. [39] The profit was estimated at $68 million. [40]

Continuing his investments in GameStop, Cohen acquired 100,000 more shares on March 22, 2022. Adjusted for the stock split, this acquisition represented 400,000 shares. [41] On June 9, 2023, Cohen bolstered his stake in the company with a purchase of 443,842 shares, equivalent to a $10 million investment. [42]

Cohen has acquired a large stake in Alibaba worth hundreds of millions of dollars. In August 2023, he began communicating with the company's board, encouraging them to increase  their share-repurchase program, which they did later that year, extending it to March 2025 and raising the amount from $25 billion to $40 billion. [43]

In addition to his active positions, Cohen also owns large passive investments in Wells Fargo and Netflix. [7]

Books

In 2022, Cohen published a series of children's books titled Teddy based on lessons he learned from his father. [7] He wrote "My father, Ted Cohen, and his lessons have guided me throughout my life. He showed me an exceptional work ethic and an unwavering commitment to delayed gratification. Even though he is no longer with us, his legacy will live on forever. By writing these books, I am sharing his values and passing his wisdom on to my children." [44]

Politics

Cohen supported President Trump during the 2024 United States presidential election, and promoted the conspiracy theory that the 2020 election was rigged. [45] [46]

Cohen was named in a federal lawsuit on August 24, 2022 for an alleged fraudulent scheme to artificially inflate the price of Bed Bath & Beyond's publicly traded stock in a pump and dump. The case was dismissed on June 11, 2024. [47] [48] [49]

Wealth

As of November 2024, Forbes estimated Cohen's net worth at $4.5 billion [12] while Maclean's estimated his net worth at $5.6 billion. [50]

Personal life

Cohen is married and lives in Bal Harbour, Florida. [12] He acquired a waterfront mansion there for nearly $24 million in 2020. [51]

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References

  1. ↑ Nille, Jennifer (January 25, 2024). "Le bilan mitigé de Ryan Cohen, le Warren Buffett des "meme stocks"" [The mixed record of Ryan Cohen, the Warren Buffett of "meme stocks"]. L'Echo (in French). Archived from the original on July 30, 2024.
  2. 1 2 Matthews, Chris (March 23, 2020). "How the coronavirus stock-market rout dealt Chewy's founder a $150 million blow to his Apple holdings, for now". MarketWatch .
  3. ↑ Trentmann, Nina; Maurer, Mark (February 24, 2021). "GameStop CFO Was Forced Out as Activist Investor Pushes New Strategy". The Wall Street Journal . Retrieved March 19, 2021.
  4. ↑ "Billionaire Ryan Cohen takes over as CEO at GameStop, adding to chairman role". AP News . September 28, 2023.
  5. ↑ "Biography - Ryan Cohen, Chief Executive Officer and Chairman". GameStop Investor Relations. Retrieved September 30, 2023.
  6. ↑ Winograd, Amanda (June 7, 2023). "How GameStop's Ryan Cohen became the 'meme king'". CNBC. Retrieved December 6, 2024.
  7. 1 2 3 Gottfried, Miriam; McCabe, Caitlin (2022-11-19). "GameStop's Ryan Cohen Wants to Be More Than a Meme-Stock King". WSJ.com.
  8. ↑ Friedman, Gabe (January 29, 2021). "The Jewish angles to the GameStop stock saga, explained". The Times of Israel .
  9. 1 2 3 Kharif, Olga; Melin, Anders (April 26, 2021). "Ryan Cohen Maps Out GameStop Turnaround Plan". Bloomberg L.P. Retrieved 2022-03-23.
  10. ↑ Friedman, Zack. "Chewy Founder Ryan Cohen, Who Sold His Company For $3 Billion, Shares His Best Advice". Forbes . Retrieved 2022-03-23.
  11. 1 2 Lima, Debora (March 3, 2017). "Chewy goes toe-to-toe with mainstay brands". The Business Journals. American City Business Journals.
  12. 1 2 3 Verdon, Joan (June 14, 2019). "Don't Bet Against Pets: Retail Lessons From The Chewy IPO". Forbes . Retrieved July 10, 2019.
  13. 1 2 Verdon, Joan (January 26, 2020). "Ryan Cohen Started A Company That Took On Amazon, And Sold It For $3 Billion. Now He's Thinking About What's Next". Forbes .
  14. ↑ Cohen, Ryan (May 4, 2020). "The Secret Weapon Behind Chewy Founder Ryan Cohen's Success". Entrepreneur .
  15. ↑ Adams, Susan (January 10, 2017). "The Man Who Found Gold In Dog Food". Forbes .
  16. ↑ Dahlberg, Nancy (March 26, 2018). "What it's like to grow and sell a multibillion-dollar company, at age 32". Miami Herald .
  17. ↑ Cohen, Ryan (January–February 2020). "The Founder of Chewy.com on Finding the Financing to Achieve Scale". Harvard Business Review . Harvard Business Publishing.
  18. ↑ Zaleski, Olivia (November 22, 2016). "Your Dog Deserves an Oil Portrait With Her Gluten-Free Kibble" . Bloomberg L.P.
  19. 1 2 Armental, Maria (April 18, 2017). "PetSmart's Latest Bite at E-Commerce: Chewy.com" . The Wall Street Journal .
  20. 1 2 3 Gottfried, Miriam (October 1, 2019). "How PetSmart Swallowed Chewy—and Proved the Doubters Wrong" . The Wall Street Journal .
  21. ↑ Loizos, Connie (April 18, 2017). "A low-flying pet supplies company just sold to PetSmart in the biggest e-commerce sale ever". TechCrunch. TechCrunch . Retrieved October 12, 2023.
  22. ↑ "40 Under 40". Fortune . 2017. Retrieved July 23, 2019.
  23. ↑ Del Rey, Jason (December 6, 2017). "Ryan Cohen kept Chewy under the radar until it sold for more than $3 billion". Vox . Retrieved July 23, 2019.
  24. ↑ Dahlberg, Nancy (March 15, 2018). "Co-founder Ryan Cohen stepping down as CEO of Chewy, a homegrown success story". Miami Herald .
  25. ↑ Gonzalez, Guadalupe (June 14, 2019). "Chewy's Co-Founder and Former CEO Explains How the Startup Went From Zero to a $8.7 Billion Public Company". Inc. Retrieved July 10, 2019.
  26. ↑ Sebastian, Dave (April 8, 2021). "GameStop to Name Chewy Co-Founder as Chairman" . The Wall Street Journal .
  27. 1 2 Gilbert, Ben (March 25, 2021). "Wall Street darling Ryan Cohen is clearing house at GameStop, bringing in e-commerce experts to transform it into the Amazon of gaming". Business Insider .
  28. ↑ Li, Yun (January 27, 2021). "GameStop mania explained: How the Reddit retail trading crowd ran over Wall Street pros". CNBC .
  29. ↑ Herbst-Bayliss, Svea (March 23, 2021). "From pet food to video games: inside Ryan Cohen's GameStop obsession". Reuters . ISSN   2293-6343 . Retrieved July 2, 2021.
  30. ↑ "GameStop shakeup rolls on, hires Amazon executive as chief growth officer". Reuters . March 30, 2021.
  31. ↑ Thomas, Lauren (April 8, 2021). "GameStop says it will name Ryan Cohen chairman". CNBC . Retrieved December 11, 2021.
  32. ↑ Fonrouge, Gabrielle; Calia, Mike (2023-09-28). "GameStop names Ryan Cohen as CEO effective immediately, won't receive salary". CNBC. Retrieved 2023-09-28.
  33. ↑ Soni, Aditya (September 28, 2023). "GameStop names billionaire Ryan Cohen as CEO in turnaround push". Reuters. Reuters . Retrieved October 12, 2023.
  34. ↑ Pendleton, Devon (June 5, 2020). "A Tech Founder Cashed Out and Bet It All on Apple and Wells Fargo" . Bloomberg L.P.
  35. ↑ Kharif, Olga (September 21, 2020). "GameStop Rises on Investor's Plan to Make It an Amazon Rival" . Bloomberg L.P. Retrieved October 13, 2020.
  36. ↑ "INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)". U.S. Securities and Exchange Commission . December 17, 2020. Retrieved December 30, 2020.
  37. ↑ "INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2(a)". GameStop . September 21, 2020. Retrieved October 13, 2020.
  38. ↑ "GameStop's Cohen takes stake in Bed Bath & Beyond, pushes for changes". Reuters . March 7, 2022. Retrieved March 7, 2022.
  39. ↑ Rexaline, Shanthi. "Ryan Cohen Said To Be Under SEC Scanner Over His 'Sketchy' Bed Bath & Beyond Trades - Chewy (NYSE:CHWY), Bed Bath & Beyond (OTC:BBBYQ), GameStop (NYSE:GME)". Benzinga. Retrieved 2023-09-09.
  40. ↑ Melin, Anders. "Ryan Cohen pockets $68 million profit on Bed Bath & Beyond trade". Fortune. Retrieved 2022-08-19.
  41. ↑ "Ryan Cohen Puts His Money Where His Mouth Is, Buys 100,000 Shares of GameStop, GameStop Due Diligence • GMEdd.com". GameStop Due Diligence • GMEdd.com. 2022-03-22. Retrieved 2024-02-10.
  42. ↑ Baccardax, Martin (2023-06-13). "Ryan Cohen Boosts Stake In GameStop With $10 Million Share Purchase". TheStreet. Retrieved 2024-02-10.
  43. ↑ Thomas, Lauren (January 16, 2023). "Activist Investor Ryan Cohen Takes Stake in Alibaba and Pushes for More Stock Buybacks". The Wall Street Journal. Retrieved December 6, 2024.
  44. ↑ "Tribute". Teddy. Retrieved 2024-02-10.
  45. ↑ Graziosi, Graig (November 11, 2024). "GameStop's CEO celebrated Trump's election victory. His company's stock has been climbing ever since". The Independent . Retrieved November 11, 2024– via Yahoo! News UK.
  46. ↑ @ryancohen (November 8, 2024). "Trump has now won 3 elections in a row" (Tweet) – via Twitter.
  47. ↑ Stempel, Jonathan. "Billionaire investor Ryan Cohen beats Bed Bath & Beyond shareholder lawsuit". Reuters.
  48. ↑ Mollman, Steve (September 4, 2022). "Bed Bath & Beyond CFO accused of "pump and dump" scheme before falling to his death from NYC skyscraper". Fortune . Retrieved September 5, 2022.
  49. ↑ "Case# 1:22-cv-02541" (PDF). The United States District Court for the District of Columbia. August 24, 2022. Retrieved September 5, 2022.
  50. ↑ Bains, Jessy; Mullen, Avery; Gagne, Claire (November 7, 2024). "Canada's Richest People". Maclean's. Retrieved December 6, 2024.
  51. ↑ Kallergis, Katherine (2020-11-10). "Lawsuit alleges Harding Realty cut out of $24M Bal Harbour sale, reveals Chewy founder as alleged buyer". The Real Deal. Retrieved 2025-01-03.
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