New York, Jan 31, 2026, 11:24 (EST)
- GameStop CEO Ryan Cohen revealed he’s chasing a big acquisition—a larger public consumer company.
- Shares climbed 4.78% Friday, ending the day at $23.88
- Cohen’s stock-option award kicks in only if GameStop reaches a $100 billion market cap and achieves $10 billion in cumulative EBITDA
GameStop CEO Ryan Cohen revealed the company is targeting a “very, very, very big” acquisition of a publicly traded consumer firm, one far larger than GameStop itself. He described the deal as “transformational” during an interview with CNBC. Cohen emphasized he’s after an undervalued company with a “sleepy management team,” though he didn’t drop any names. Shares of GameStop jumped 4.78% on Friday, closing at $23.88, according to Yahoo Finance. TipRanks
Cohen’s remarks arrive as he attempts to reposition GameStop as a Berkshire Hathaway-style holding company, anchored by a massive cash reserve. He told The Wall Street Journal this move could be “genius or totally, totally foolish,” according to Investing.com. The report noted that GameStop holds about $9 billion in cash, and Cohen called Michael Burry “one of the few investors I respect.” Investing.com
Earlier this month, GameStop’s board granted Cohen a stock option award tied to performance, covering 171,537,327 shares at an exercise price of $20.66. He won’t receive any salary or cash bonus. The options vest only if the company reaches a $20 billion market cap and $2 billion in cumulative EBITDA—earnings before interest, taxes, depreciation, and amortization. The final tranche kicks in if GameStop hits a $100 billion market value and $10 billion in cumulative EBITDA. Shareholder approval is still pending, with a special meeting expected in March or April, the company said. GameStop Investor Relations
Skeptics are already voicing doubts. Michael Pachter, equity research managing director at Wedbush Securities, told Fortune, “I’d say no, not going to happen.” Cohen, who founded online pet retailer Chewy before its $3.35 billion acquisition by PetSmart, is now aiming for a far bigger comeback at GameStop. Fortune
GameStop’s annual revenue has dropped over 35% since 2022, with its stock plunging roughly 80% from the highs seen during the 2021 meme-stock surge, Reuters reported earlier this month. The new compensation package mirrors the long-term stock-option deal given to Tesla CEO Elon Musk and follows sharp cost reductions and store closures that have helped the company return to profitability, according to the report. Reuters
Cohen’s strategy is straightforward: acquire a larger asset, turn it around, then rely on the market to take it from there. This marks a clear departure from the GameStop narrative many investors still recall.
Deals that size are complicated, even when the target company is on board. When the buyer is the smaller party, things can get odd quickly—financing, control, and governance often overshadow the asset itself.
Here’s the fundamental issue: no target has been identified. Cohen didn’t provide a timeline or a price range, and the company hasn’t revealed any process details, advisers, or terms—only a vague promise and plenty of flexibility.
