GameStop CEO undergoes surgery for brain tumor

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GameStop Corp, the world’ largest retailer videogame products, said Chief Executive Paul Raines underwent an unexpected surgery last week for a small cancerous brain tumor.

Raines, who will be undergoing chemotherapy, will restrict travel during the expected six week treatment, the company said in a regulatory filing on Tuesday.

gamestopGameStop also said the six-week treatment period will not interfere with Raines’ “continued leadership” the company.

Raines, 50, was GameStop’ chief operating from September 2008 to June 2010 before moving into current role, according to the company’ website.

The company is unlikely to bring in an interim CEO as Raines’ treatment lasts only weeks and not months, Wedbush Securities analyst Michael Pachter told Reuters in a mail. [eap_ad_2] Since Raines took over as CEO, GameStop’s shares have nearly doubled. But the stock has lost some of those gains this year as game software sales remain weak at a time when the company’s used-game business, its most profitable, faces competition from Wal-Mart.

During the treatment period, some of Raines’ duties may be taken over by President Tony Bartel and Chief Financial Rob Lloyd, SunTrust Robinson Humphrey Capital Markets analysts David Magee wrote in a note.

“… We view (Paul Raines’) expected timely return (later this fall) as important to GameStop’s ongoing success,” Magee added.

The company is scheduled to -quarter results on Aug. 21.

GameStop’s shares were marginally up at $41.05 by midday. They closed at $40.65 on the York Stock Exchange on Tuesday. (Reuters)[eap_ad_3]