GameStop CEO Plans Major Acquisition to Transform Business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
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Should l Buy GME?
Source: Newsfilter
GameStop Corp (GME) reached a 20-day high, reflecting investor optimism amid recent news.
CEO Ryan Cohen announced plans to acquire a publicly traded consumer company with a market cap of $100 billion, significantly larger than GameStop's current valuation. While Cohen is confident about the acquisition's potential, industry experts express skepticism regarding the feasibility of such growth in the retail sector without a fundamental transformation. Additionally, GameStop has improved its financial performance, achieving a net income of $77.1 million and a gross margin increase of 7 percentage points since Cohen took over in September 2023.
The implications of this acquisition plan could be transformative for GameStop, positioning it for significant growth if executed successfully. However, the market remains cautious, and investors should monitor the developments closely.
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Analyst Views on GME
About GME
GameStop Corp. offers games and entertainment products through its stores and ecommerce platforms. The Company operates in four geographic segments: United States, Canada, Australia and Europe. Each segment consists primarily of retail operations, with the significant majority focused on games, entertainment products and technology. The Company has a total of approximately 3,203 stores across all of its segments: 2,325 in the United States, 193 in Canada, 374 in Australia, and 311 in Europe. Its stores and ecommerce sites operate primarily under the names GameStop, EB Games and Micromania. Its Australia and Europe segments also include 38 pop culture-themed stores selling collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers in international markets operating under the Zing Pop Culture brand. Its retail stores are generally located in strip centers, shopping malls and pedestrian areas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- CEO Strategic Shift: CEO Ryan Cohen has described Bitcoin primarily as a macro hedge but has downplayed its importance relative to other capital allocation priorities, indicating a shift towards pursuing M&A opportunities that may alter the company's investment strategy.
- Stock Performance: Despite the decline in Bitcoin holdings value, GameStop's shares have risen over 22% year-to-date, reflecting a positive market response to its new strategy and attracting speculative buyers' interest.
See More
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See More
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- Insider Buying Continues: Michael Burry disclosed via Substack that he is accumulating GameStop shares, viewing the stock as trading near tangible book value, while Cohen purchased one million shares last week at approximately $21, increasing his stake to about 9.3%, demonstrating executive confidence in the company's future.
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See More
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- Acquisition Strategy: CEO Ryan Cohen indicated that GameStop is eyeing a 'big' acquisition in the public retail sector, leveraging nearly $9 billion in cash reserves to pivot the business and enhance stock value, demonstrating a strong commitment to strategic transformation.
- Investor Confidence: Notable investor Michael Burry recently disclosed a long position in GameStop and suggested several potential acquisition targets, including ADT and Wayfair, which further boosted market optimism, as evidenced by rising sentiment on Stocktwits.
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See More
