GameStop's Ryan Cohen eyes 'very big' consumer megadeal that could increase company's value tenfold

Core Viewpoint - GameStop is planning to acquire a significantly larger publicly traded consumer company, which CEO Ryan Cohen believes could be transformational for the company and the capital markets [1][2]. Group 1: Acquisition Plans - The acquisition is described as "really big" and has the potential to make GameStop worth "several hundreds of billions of dollars" if successful [2]. - Cohen is targeting an undervalued, high-quality consumer company with growth prospects and a "sleepy management team" [2]. - The ambition to increase GameStop's market cap to over $100 billion is seen as a challenging task given its current market cap of $10.5 billion [2][5]. Group 2: Financial Performance - Since Cohen's takeover in September 2023, GameStop has improved its profitability, with net income rising to $77.1 million from a loss of $3.1 million [5]. - The company's gross margin has increased by 7 percentage points during this period, and it has posted consecutive annual net incomes for fiscal 2024 and 2025 after five years of losses [5]. Group 3: Investor Sentiment - Investor Michael Burry has shown interest in GameStop, indicating confidence in Cohen's ability to leverage the company's current situation for future growth [6][7]. - Burry commented on Cohen's strategy of maximizing the current business while waiting for an opportunity to acquire a more profitable company [7]. Group 4: Strategic Direction - Cohen has not ruled out liquidating GameStop's bitcoin holdings to fund the acquisition but believes the new strategy is more compelling than bitcoin [8]. - The approach is likened to Berkshire Hathaway's strategy, aiming to create significant value in a shorter timeframe by applying operational efficiency [9].