Investing.com -- GameStop Corp (NYSE:GME) CEO Ryan Cohen is charting a path to transform the video game retailer into a diversified $100 billion juggernaut through a major acquisition. According to reporting from The Wall Street Journal, the billionaire intends to pivot toward the consumer or retail sectors to facilitate this massive expansion.
The "Big Short" investor Michael Burry has emerged as a vocal supporter of this strategic shift toward a Berkshire Hathaway-style holding company model. Investors seem to agree with Burry, as the stock has risen roughly 4.5% in Friday trade following the report.
Cohen acknowledged the high stakes of the move, telling the Journal that "It’s ultimately either going to be genius or totally, totally foolish." To unlock a personal payday valued at $35 billion, he must drive the company’s market capitalization from its current level to the century-mark milestone.
This ambitious compensation structure follows a trend of moonshot executive deals, mirroring high-reward frameworks recently approved at Tesla for CEO Elon Musk. Burry noted in a recent newsletter that Cohen is effectively managing a declining core business while waiting for a "cash cow" opportunity.
Cohen "has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash," Burry wrote. With roughly $9 billion in cash, GameStop possesses the necessary fire-power to pursue targets with stagnant management teams.
The CEO remains dismissive of the "meme stock" label, asserting that his focus remains entirely on long-term fundamental value. "He’s one of the few investors I respect," Cohen told the Journal regarding Burry’s public support and track record of prescient calls.
