GameStop board approves stock split plan, shares rise

GameStop Corp said on Wednesday its board has approved a four-for-one stock split, sending the video game retailer's shares up more than 5% in extended trading.

The "meme stock" company in March sought shareholder approval for the split, planning to increase its outstanding Class A common shares to 1 billion from 300 million in a bid to make it easier for retail investors to own its stock. The split will be in the form of a stock dividend, which will be distributed after markets close on July 21.

Shareholders will receive the dividend of three additional shares of the company's Class A common stock for each share held. The retailer is making its pivot towards e-commerce to reinvigorate business after the pandemic crushed brick-and-mortar businesses.