GameStop’s CEO, Ryan Cohen, plans to acquire a larger consumer company, aiming for a “transformational” deal that could make GameStop worth several hundreds of billions. Skepticism exists about achieving this, with experts questioning the feasibility of such a growth strategy in the retail sector.

Cohen has turned GameStop profitable since becoming CEO in 2023, growing gross margins by 7 percentage points and posting consecutive annual net incomes. Investor Michael Burry has taken notice, buying shares and praising Cohen for maximizing GameStop’s potential amid meme stock hype.

GameStop has accumulated a $9 billion cash pile, previously used to invest in bitcoin. Cohen’s new strategy focuses on acquiring undervalued consumer companies to drive profitability. This approach aims to replicate Berkshire Hathaway’s success in creating significant value in a shorter timeframe through operational efficiency.

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1. Tesla reported record profits in the second quarter, exceeding analysts’ expectations. The electric car maker’s revenue rose to $11.96 billion, driven by strong sales of its Model 3 and Model Y vehicles.

2. Amazon announced plans to acquire MGM Studios for $8.45 billion. The deal is expected to boost Amazon’s streaming service, Prime Video, with a library of iconic films and TV shows like James Bond and The Handmaid’s Tale.

3. The Federal Reserve left interest rates unchanged and signaled that it may raise rates sooner than expected. The central bank also hinted at tapering its bond-buying program as the economy continues to recover from the pandemic.: GameStop CEO Ryan Cohen targets consumer mega deal