GameStop was once the go-to destination for video games. Then it was the archetypal “meme stock” in 2021, when a band of Reddit-reading retail investors thwarted hedge funds’ shorts on the company stock, sending the company’s stock skyrocketing. There was even a movie about it. But its eccentric, some would say visionary, is back with a plan that he thinks could rival the wild days of half a decade ago.
Despite that selloff, the company’s CEO Ryan Cohen said in an interview with The Wall Street Journal he’s aiming to turn the $11 billion company into a $100 billion-plus business via an acquisition of a publicly traded company. The billionaire envisions the company extending beyond its standard video game and collectible sales.
“It’s ultimately either going to be genius or totally, totally foolish,” Cohen told The Journal.
In a world where physical video games are swiftly becoming antiquated, the move signals the company’s desire to modernize. The fervor over the company in 2021, which sent the struggling video retailer’s stock up 2,700%, was inspired in part by hedge funds and retail investors’ understanding that the company was growing obsolete. Nevertheless, Cohen believes he can turn that image around and find a buyer willing to pay hundreds of billions for the business.
