GameStop's Ryan Cohen eyes 'very big' consumer megadeal that could increase company's value tenfold
Ryan Cohen wouldn't say whether he would sell GameStop's bitcoin to try to pull off a major acquisition.
TL;DR
- GameStop CEO Ryan Cohen is planning a "transformational" acquisition of a larger, undervalued consumer company.
- The acquisition aims to increase GameStop's market value to potentially hundreds of billions of dollars.
- Cohen seeks a "high quality, durable, scalable with growth prospects" consumer company with a "sleepy management team."
- Cohen believes GameStop has the governance, capital, and operational expertise to make the acquisition successful.
- GameStop has amassed over $9 billion in cash and has shown improved financial performance under Cohen's tenure.
- The company has an equity incentive for Cohen that requires reaching a $100 billion market cap and $10 billion in cumulative EBITDA.
- Investor Michael Burry has been buying GameStop shares, viewing Cohen's strategy as "making lemonade out of lemons."
- Cohen compared the strategy to Berkshire Hathaway but on a compressed timeline, focusing on brutal efficiency and profitability.