GameStop Acquisition: CEO’s $100 Billion Gamble After Short Squeeze
- GameStop, the video game retailer once on the brink of obsolescence, is aiming for a massive comeback. CEO Ryan Cohen plans to transform the $11 billion company into...
- Cohen envisions GameStop expanding beyond it's customary video game and collectible sales, a move signaling the company's desire to modernize in a rapidly changing market. the 2021 "meme...
- "It's ultimately either going to be genius or totally, totally foolish," Cohen told The Journal.
GameStop, the video game retailer once on the brink of obsolescence, is aiming for a massive comeback. CEO Ryan Cohen plans to transform the $11 billion company into a $100 billion-plus business through the acquisition of a publicly traded company, according to an interview with The Wall Street Journal.
Cohen envisions GameStop expanding beyond it’s customary video game and collectible sales, a move signaling the company’s desire to modernize in a rapidly changing market. the 2021 “meme stock” frenzy, which saw GameStop’s stock surge 2,700%, was fueled partly by the recognition that the retailer was struggling to adapt.
“It’s ultimately either going to be genius or totally, totally foolish,” Cohen told The Journal.
The potential acquisition target is likely within the consumer or retail industry, though specifics remain unclear.Cohen’s ambition is heavily incentivized by a recently approved compensation package worth over $35 billion in stock options. This award is contingent on increasing the company’s market capitalization to $100 billion and achieving $10 billion in Cumulative Performance EBITDA.
Since 2021, Cohen has already increased GameStop’s market capitalization from $1.3 billion to approximately $9.3 billion - a 615% increase in stockholder value. The board of directors announced the performance award earlier this month.
Fortune reached out to GameStop for comment but did not receive an immediate response.