GameStop CEO Ryan Cohen has announced plans to acquire a publicly traded company, leveraging the firm's massive $8.8 billion cash reserve, which sent the company's stock price higher. In an interview with The Wall Street Journal, Cohen stated he is hunting for an acquisition target, most likely in the consumer or retail sectors.
The announcement fueled a 4.3% stock price increase to $23.79 on Friday, January 30, 2026, contributing to a 17% gain for the stock so far in 2026. Cohen's aggressive strategy is backed by a proposed, purely performance-based compensation package that could be worth up to $35 billion. The package, which requires shareholder approval in March or April, grants Cohen options to buy up to 171.5 million shares at $20.66 each, but only if GameStop achieves a $100 billion market valuation and $10 billion in cumulative performance earnings. The company's current market cap is approximately $10.2 billion.
Cohen's confidence is further signaled by a recent personal share purchase. He bought 1 million GameStop shares on January 20-21, 2026, increasing his stake in the company to 9.3% and driving investor sentiment. He acknowledged the high-risk nature of his plan, calling the potential acquisition either "genius or totally, totally foolish."
The strategy has garnered support from notable investor Michael Burry, who has been buying GameStop shares and compared Cohen's approach to Warren Buffett's transformation of Berkshire Hathaway. Burry noted that while GameStop's core business is declining, Cohen is "milking it best he can" while using the meme stock phenomenon to raise cash for acquisitions.
This move marks a significant evolution for GameStop, which has transitioned from a struggling brick-and-mortar retailer during the 2021 meme stock frenzy to a cash-rich entity seeking its next chapter through strategic acquisition.
