GameStop (GME) Stock Jumps as CEO Announces Plans to Acquire Public Company

TLDR

• GameStop CEO Ryan Cohen plans to acquire a publicly traded company, targeting the consumer or retail sector with $8.8 billion in cash.
• The stock rose 4.3% Friday and has gained 17% in 2026 after Cohen’s acquisition announcement.
• Cohen’s proposed compensation could reach $35 billion if GameStop achieves a $100 billion market cap and $10 billion in performance earnings.
• Michael Burry is purchasing GameStop shares and likened Cohen’s strategy to Warren Buffett’s approach at Berkshire Hathaway.
• The performance-based pay package requires shareholder approval in March or April and includes no base salary.

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Ryan Cohen is ready to put GameStop’s cash to work. The CEO told The Wall Street Journal he’s hunting for a publicly traded company to acquire, most likely in the consumer or retail sectors.

GameStop Corp., GME

GameStop has accumulated $8.8 billion in cash as of October’s end. The figure represents a massive jump from the $619 million the company held in January 2021 during the meme stock surge.

Investors are betting on genius. The stock climbed 4.3% to $23.79 Friday. GameStop has posted a 17% gain so far in 2026.

Massive Compensation Tied to Performance

Cohen’s financial incentives are directly linked to the company’s growth. A proposed pay package could grant him options to buy up to 171.5 million shares at $20.66 each.

The deal comes with strict requirements. Cohen only receives the full package if GameStop reaches a $100 billion market valuation and hits $10 billion in cumulative performance earnings.

GameStop’s current market cap stands at approximately $10.2 billion. Cohen needs to grow the company nearly tenfold to unlock his complete compensation.

The structure eliminates traditional pay. No salary. No bonuses. Everything depends on hitting those targets.

Shareholders get the final say between March and April. The potential value of Cohen’s package could reach $35 billion if all conditions are met.

“Big Short” Investor Backs the Strategy

Michael Burry has become a vocal supporter of Cohen’s vision. The investor who famously predicted the 2008 housing collapse is actively buying GameStop shares.

Burry drew parallels between Cohen and Warren Buffett. He pointed to Buffett’s transformation of Berkshire Hathaway from a struggling textile manufacturer into a trillion-dollar conglomerate through strategic acquisitions.

Burry’s Substack newsletter offered a candid assessment. He described GameStop’s core business as declining but noted Cohen is maximizing value while searching for the right acquisition target.

The Acquisition Blueprint

Cohen’s approach mirrors successful holding company models. His strategy focuses on buying undervalued businesses and improving their operations for long-term gains.

The Chewy co-founder has kept a relatively low profile since taking GameStop’s helm. This acquisition push represents his clearest roadmap for the company’s evolution.

Any deal would immediately impact GameStop’s market cap and revenue. But sustained earnings growth requires operational excellence after the acquisition closes.

Cohen pushed back against the meme stock label during his Journal interview. He stressed his commitment to building fundamental long-term value rather than chasing short-term hype.

The compensation model follows recent executive pay trends. Companies like Tesla have implemented similar performance-dependent packages for their CEOs.

GameStop hasn’t provided details connecting Cohen’s pay structure to specific acquisition timelines. The company has evolved from a brick-and-mortar retailer facing existential threats into a cash-rich business searching for its next chapter.

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