GameStop (NYSE: GME) is exploring a large-scale acquisition that Chief Executive Officer Ryan Cohen says could fundamentally reshape the company and dramatically expand its long-term value.Speaking in a recent television interview, Cohen said the retailer is actively evaluating opportunities to acquire a publicly traded consumer-facing company that is significantly larger than GameStop itself. While he declined to identify specific targets, Cohen described the potential transaction as unusually ambitious and positioned it as a long-term value creation strategy rather than a near-term financial maneuver.

Cohen said the company is seeking assets that are established but under-optimized businesses with durable brands, scalable operations, and room for operational improvement. He added that GameStop’s balance sheet strength, governance structure, and management experience give it flexibility to pursue opportunities that might otherwise be out of reach.

GameStop’s interest in a major acquisition comes after several years of operational restructuring. Since Cohen assumed the CEO role in late 2023, the company has reduced costs, improved margins, and returned to consistent profitability after years of losses. While overall sales have remained pressured, GameStop has expanded higher-margin segments such as collectibles and strengthened its cash position.

The company now holds more than $9 billion in cash and marketable securities, giving it one of the strongest balance sheets in the specialty retail sector. Part of that capital has been allocated to bitcoin investments, though Cohen declined to say whether those holdings could be liquidated to support a transaction. He said the company’s acquisition strategy is currently viewed internally as more compelling than continued exposure to digital assets.GameStop recently introduced a performance-based equity incentive plan tied to aggressive milestones, including a market capitalization target of $100 billion and cumulative earnings benchmarks. Achieving those thresholds would represent a roughly tenfold increase from the company’s current valuation, underscoring the scale of the strategy Cohen is pursuing.

Not all market observers are convinced such an outcome is achievable within the consumer sector. Some industry executives have expressed skepticism that a single acquisition could generate that level of value creation without a fundamental reinvention of the business model. Cohen acknowledged the risks, characterizing the plan as high conviction but not without downside if execution falls short.Despite the uncertainty, investor interest in GameStop has remained elevated. The company’s turnaround has drawn attention from high-profile market participants, and its strong liquidity position gives it optionality at a time when many consumer companies are facing valuation pressure.

Cohen said the company is prepared to wait for the right opportunity and emphasized that any transaction would need to deliver long-term benefits to shareholders.

About GameStop

GameStop (NYSE: GME) is a U.S.-based specialty retailer focused on video games, consumer electronics, and collectibles. The company operates a global network of retail stores and e-commerce platforms serving gamers and pop-culture enthusiasts. In recent years, GameStop has undergone a significant transformation focused on profitability, balance sheet strength, and strategic flexibility.

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.