GameStop Goes Full Conglomerate-Mode as Michael Burry Backs Plan

Korea’s “chaebol” conglomerates dominate multiple industries under one roof, and GameStopGME

wants to join the club. With the meme-stock circus mostly behind it, CEO Ryan Cohen is betting on a “big” acquisition to 10x his empire. But with a stock down over 70% from its highs, even he’ll admit the plan is either “genius or totally, totally foolish.”

• Aligning with his experience, the ChewyCHWY
  founder is hunting a public retail or consumer business — using GameStop’s $9B cash pile that’s collected dust since the Reddit bonanza.
• Success could land Cohen a $35B payday despite taking no salary — a moonshot deal modeled after Elon Musk’s Tesla compensation plan that pays out tranches asGME
  climbs to $100B.

Burry is bullish?! Despite the bold maneuvering, famed short seller Michael Burry revealed he’s bullish on GameStop’s rebirth. The Big Short investor compared the strategy to Berkshire Hathaway’s ($BRK-B) playbook of acquiring profitable businesses that generate sustainable cash flow — like an insurer. He believesGME

’s current valuation gives some downside protection while Cohen’s execution could unlock “asymmetric” upside. Still, for a retailer that’s pivoted between NFTs, collectibles, and M&A, investors are left wondering whetherGME

is looking for the next shiny object or a sustainable business model.