"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."
"However, Cohen told The Journal he believes that match could be in the consumer or retail industry. The billionaire has a strong carrot motivating him to fulfill this purchase. Earlier this month, the board of directors announced it had voted to increase Cohen's pay package to more than $35 billion awarded entirely in stock options-if he is able to increase the company's market capitalization to $100 billion and achieve $10 billion in Cumulative Performance EBITDA."
GameStop seeks transformation from an $11 billion physical-video-game retailer into a $100 billion-plus diversified consumer company through acquiring a public firm. CEO Ryan Cohen plans to expand beyond video games and collectibles to modernize the business as physical-game demand fades. The board granted Cohen stock-option incentives exceeding $35 billion contingent on reaching $100 billion market capitalization and $10 billion cumulative performance EBITDA. The company hopes a consumer or retail acquisition will catalyze dramatic growth, though target specifics remain unclear and the strategy carries high upside and significant risk given GameStop's recent volatility and past meme-stock surge.
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