Additional Coverage:
- GameStop’s Ryan Cohen eyes ‘very big’ consumer megadeal that could increase company’s value tenfold (cnbc.com)
GameStop CEO Ryan Cohen Eyes “Transformational” Acquisition, Promising Massive Growth
GameStop CEO Ryan Cohen has revealed ambitious plans to acquire a publicly traded consumer company significantly larger than the video game retailer, a move he believes could be “transformational” for the company and potentially the capital markets. In an exclusive interview, Cohen described the prospective deal as “very, very, very big,” aiming for a market capitalization in the “hundreds of billions of dollars.”
Cohen, while declining to name specific targets, indicated he is seeking an undervalued, “high quality, durable, scalable with growth prospects” consumer company led by a “sleepy management team.” He acknowledged the high stakes, stating, “If it works, it’s genius.
If it doesn’t work, then, you know, it will be totally, totally foolish.” However, he expressed strong confidence in GameStop’s “governance structure, capital, [and] operational expertise” to execute the plan.
This aggressive strategy comes after GameStop unveiled an all-or-nothing equity incentive for Cohen in January, contingent on the company reaching a $100 billion market cap and $10 billion in cumulative earnings before interest, taxes, depreciation, and amortization. If successful, Cohen stands to receive a substantial payout, though he emphasized that he hopes “all shareholders do” as well.
Since taking the helm as CEO in September 2023, Cohen has been credited with a significant turnaround at GameStop. He has drastically reduced costs, improved profitability, and expanded the collectibles business, despite a decline in overall sales. The company has moved from five consecutive years of losses to posting net incomes in fiscal years 2024 and 2025, with net income climbing to $77.1 million in its most recent quarter.
This resurgence has caught the attention of prominent investors like Michael Burry, known for his prescient bet against the U.S. housing market. Burry recently disclosed his investment in GameStop shares, noting Cohen is “making lemonade out of lemons” by leveraging the “meme stock phenomenon to raise cash and wait for an opportunity to make a big buy of a real growing cash cow business.”
GameStop has also accumulated a cash pile exceeding $9 billion from cash on hand and marketable securities, some of which has been invested in bitcoin. When questioned about liquidating these bitcoin holdings to fund the acquisition, Cohen remained tight-lipped, only stating that his new strategy is “way more compelling than bitcoin.”
Industry experts, however, expressed skepticism about the feasibility of such a dramatic increase in value through a consumer acquisition. One investment banker in the consumer and retail sector commented, “I’ve never seen it,” suggesting that such a rapid transformation would require a radical shift in business models.
Another agreed, stating, “It’s easy to say something. It’s a lot harder to do it.”
Cohen, drawing a parallel to Berkshire Hathaway, stated, “It’s similar to Berkshire Hathaway, except what Berkshire did in decades we’re attempting to do in a much shorter time in terms of creating that much value.” He believes GameStop’s “brutal efficiency” mindset can be applied to “under optimized asset[s]” to quickly increase profitability and capture significant value.