Ryan Cohen has never been shy about bold moves, but his latest plan for GameStop Corp. (GME) might be his most audacious yet. The CEO wants to transform the video game retailer from an $11 billion company into a $100 billion-plus behemoth, and he's willing to bet big to make it happen.
In an interview with The Wall Street Journal on Thursday, Cohen laid out his vision for GameStop's future—one that extends far beyond selling video games and collectibles. The strategy centers on a major acquisition of a publicly traded company, likely in the consumer or retail space where Cohen has built his reputation.
While Cohen declined to name specific targets, he made it clear they would be "big." He's also remarkably candid about the risks involved, acknowledging that this gambit will ultimately prove either "genius or totally, totally foolish." Not exactly the kind of hedged language you typically hear from corporate executives, but that's Cohen for you.
The Burry Connection
GameStop's stock has been riding another wave lately, fueled by news that legendary investor Michael Burry—the guy who famously bet against the housing market in 2008—has taken a fresh stake in the company. Burry sees parallels between Cohen and Warren Buffett, and he's suggesting GameStop follow the Berkshire Hathaway (BRK.B) playbook.
In his Substack newsletter, Burry argued that GameStop should put its massive cash reserve to work making consequential acquisitions. He specifically believes the stock could climb if Cohen deploys $10 billion or more to acquire a strong business, such as an insurer with substantial investable customer premiums—basically, a company with steady cash flows that can be reinvested.
Cohen told The Wall Street Journal he hasn't spoken to Burry since at least 2019, though he called him a respected investor known for making early, accurate calls. It's an interesting dynamic: Burry making the public case for a strategy that Cohen appears ready to execute.
What The Numbers Say
GameStop currently ranks in the 70th percentile for value and the 96th percentile for growth based on market data, reflecting relatively strong performance metrics despite the company's ongoing transformation challenges.
The stock has had a rough year overall, declining 18.51% over the past twelve months. But on Friday, shares climbed 2.54% in pre-market trading as investors digested Cohen's ambitious plans and Burry's endorsement.
Whether Cohen can pull off this transformation remains to be seen. Turning an $11 billion specialty retailer into a $100 billion diversified giant through a single massive acquisition is the kind of move that could either cement his legacy or become a cautionary tale. As Cohen himself admits, there's not much middle ground here—it's either genius or totally foolish.
