GameStop shares soar more than 10% as company plans stock split

The company said it would implement a stock split.

At its next shareholder meeting, the video game retailer will seek approval to increase the number of Class A common stock from 300,000,000 to 1,000,000,000 in order to conduct a stock split in the form of a stock dividend.

After the announcement, shares of the meme stock increased in value.

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It was not clear how much of the increased share count would be used. A line in a regulatory filing suggested that part of the increase in shares could be used to sell more stock.

The company said that the authorization would be used to provide flexibility for future corporate needs.

The final board approval is what will determine the stock dividend.

The shares of GameStop have been on a tear this month, as enthusiastic retail investors stood by their meme favorite. The stock got a boost earlier this month when chairman Ryan Cohen bought an additional 100,000 shares.

Despite the fact that the company revealed little about its e-commerce transformation, investors and analysts are still disappointed.