Today on Recur Now: It's been a brutal year for GameStop. We dive deep on how it plans to recover. Plus, NBC Universal dropped details on its new streaming service, WeWork's IPO remains on the back burner, and get a taste of Italy delivered to your door.
Peacock will offer more than 15,000 hours of content television, film, and content originals. Peacock will host fan favorites like "The Office" and "Parks and Recreation" as well as some originals such as a "Battlestar Galactica" reboot.
On the Back Burner
WeWork’s on-again off-again initial public offering is delayed once again. CNBC reported WeWork’s parent company, We Company, is delaying the IPO with no set plans on how long it will last.
However, an undisclosed source told Reuters that We Company is considering a delay until October because of concerns that its stock market debut would be snubbed by investors.
This saga may go on until the New Year; We Company said in a statement it expects the IPO to be completed by 2020.
Even though Borgatti’s is Bronx-based, it ships all over the country. You might just be clicks away from homemade pasta.
GameStop Employs Radical Transparency
Despite being the largest video game retailer, GameStop's stock price took a major hit this year. It was about $16 in January and dropped to about $4 by August. The gradual decline in GameStop's stock price represents hundreds of millions of dollars in lost value. But, it's not over yet.
GameStop welcomed two new members to its executive team, CEO George Sherman and CFO James Bell. As reported by Business Insider, the two claim they have a plan to save the day.
GameStop's downward spiral feels reminiscent of Blockbuster, which shut down a few years ago. Even though picking out a BlockBuster movie and maybe some candy was a novelty, it couldn’t compete with the convenience of the cloud. Analysts say the future of gaming also lives in the cloud with services like Playstation Now, Google Stadia, and Apple Arcade.
GameStop’s new CEO has his own idea in saving GameStop: employing radical transparency as a means of improving analyst sentiment. Sherman said,
“Deliver on our promises — when we say we’re going to do something, go do it. We are very clear by saying that our story is not a sales story for the next four quarters or so.”
ProfitWell Pricing Strategist, Devin Bhatia, gave us his hot take on how he thinks GameStop could recover.
"GameStop needs to redesign their whole business model. They need to go strictly digital and I think that their retail stores, they can shut down maybe half of them. They need to be a place where kids can go and actually play video games in and build their community within their stores."
ProfitWell Book Club
On today’s ProfitWell Book Club, I dive deep into "Zero to One" written by Peter Thiel — who claims we live in an age of technological stagnation, and even though IT has improved rapidly, there's no reason why progress should be limited to computers or Silicon Valley.
And that’s a wrap for your September 18th subscription news. Recruit your friends into the subscription know by sending them to profitwell.com/recur/recurnow to sign up for episodes on the daily.