GameStop $GME ( ▲ 4.69% ) could be gearing up for a major deal, according to CEO Ryan Cohen, who said he’s looking at a large acquisition that could turn out to be either “genius or totally, totally foolish.” The comment underscores how aggressively the company may be thinking about its next chapter.
Cash pile fuels big ambitions
GameStop has built up a sizable war chest thanks to past meme-stock rallies and cost-cutting under Cohen’s leadership. While the retailer has stabilized operations and expanded into collectibles, many investors believe a transformative acquisition is key to unlocking the next phase of growth.
Recent moves, including shifts in how the company manages its crypto holdings, have fueled speculation that GameStop is preparing for greater financial flexibility ahead of a potential deal.
Cohen has skin in the game
Cohen’s compensation is increasingly tied to GameStop’s long-term market value and profitability, giving him strong incentives to pursue bold moves. He has also been personally buying more shares, reinforcing his public stance that executives should have their own money at stake.
That alignment could make investors more willing to back an ambitious strategy, even one that carries significant risk.
Bull case vs. execution risk
Supporters see the possibility of a large acquisition as a path to reinvent GameStop beyond physical retail. Skeptics worry that a misstep could destroy value, especially given the company’s history of volatility and uneven profitability.
For now, the market is left to weigh whether Cohen’s next big swing will redefine GameStop $GME ( ▲ 4.69% ) or prove to be the kind of bet that only looks smart in hindsight.