Overview
- Ryan Cohen said he is targeting a large, publicly traded consumer or retail company he deems undervalued, calling the potential deal “transformational” and either “genius” or “totally, totally foolish.”
- GameStop holds roughly $8–9 billion in cash and marketable securities to fund a purchase, and Cohen declined to say whether the company would tap its bitcoin holdings.
- The all-or-nothing compensation proposal could grant Cohen up to about $35 billion in options only if GameStop reaches a $100 billion valuation and $10 billion in cumulative EBITDA, with a shareholder vote expected in March or April.
- Shares rose about 4.3% Friday and are up roughly 17% this year following Cohen’s remarks about pursuing a major acquisition.
- Skepticism from industry analysts remains high regarding the feasibility of reaching $100 billion, even as investor Michael Burry disclosed new purchases and publicly backed Cohen’s strategy.