TLDR
- GameStop CEO Ryan Cohen plans to acquire a publicly traded company in the consumer or retail sector using the company’s $8.8 billion cash reserve.
- GameStop shares jumped 4.3% on Friday and are up 17% in 2026 following Cohen’s acquisition announcement.
- Cohen’s proposed compensation package could be worth $35 billion if GameStop reaches a $100 billion market cap and $10 billion in cumulative performance earnings.
- Michael Burry, featured in “The Big Short,” has been buying GameStop shares and compared Cohen to Warren Buffett.
- Shareholders will vote on Cohen’s pay package in March or April, which includes no salary or bonuses and vests only if performance targets are met.
GameStop CEO Ryan Cohen revealed plans to acquire a publicly traded company. He told The Wall Street Journal he’s eyeing several candidates, likely in the consumer or retail industry.
The move comes as GameStop sits on $8.8 billion in cash. That’s up from just $619 million in January 2021 when the meme-stock frenzy began.
Cohen didn’t mince words about the stakes. “It’s ultimately either going to be genius or totally, totally foolish,” he said.
Investors seem optimistic about the strategy. GameStop shares rose 4.3% to $23.79 on Friday. The stock has climbed 17% in 2026.
The timing aligns with a new compensation package proposed for Cohen. The deal could give him options to purchase up to 171.5 million shares at $20.66 each.
The package has a catch. Cohen only gets the full award if GameStop hits a $100 billion market cap and $10 billion in cumulative performance earnings. That’s before interest, taxes, depreciation, and amortization.
The Burry Factor
Michael Burry has thrown his weight behind Cohen’s vision. The investor famous for predicting the 2008 housing crash has been buying GameStop shares.
Burry compared the 40-year-old Cohen to Warren Buffett. He pointed to how Buffett transformed Berkshire Hathaway from a struggling textile company into a trillion-dollar conglomerate through smart acquisitions.
In a Substack post, Burry called Cohen one of the few investors he respects. He noted that Cohen is “milking” a declining core business while waiting for a “cash cow” opportunity.
“He has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash,” Burry wrote. With roughly $9 billion available, GameStop can target companies with underperforming management teams.
The Road to $100 Billion
Cohen’s compensation structure mirrors recent executive deals at companies like Tesla. The potential $35 billion payout depends entirely on hitting those performance milestones.
GameStop’s current market cap stands at around $10.2 billion. That means Cohen needs to grow the company’s value by nearly ten times to fully vest his award.
The package includes no salary or bonuses. It’s all or nothing based on performance.
Shareholders will vote on the proposal between March and April. Any deal Cohen pursues would likely boost GameStop’s market cap and revenue in the short term.
But hitting those earnings targets requires more than just buying another company. Cohen would need to manage the acquisition effectively.
Cohen dismissed the “meme stock” label in his interview. He said his focus remains on long-term fundamental value.
The Chewy co-founder has kept a low profile since taking over GameStop. This acquisition strategy represents his clearest vision yet for the company’s future.
GameStop hasn’t commented on how Cohen’s compensation links to the acquisition strategy. The company has transformed from a struggling brick-and-mortar retailer into a cash-rich entity looking for its next chapter.
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