GameStop Corp. (NYSE: GME) was among the top-performing stocks on Friday after its share price rose 4.78% to $23.88. The surge came as investors reacted to news that the company is preparing to acquire a major firm as part of its long-term transformation strategy.
The planned acquisition is expected to support GameStop’s goal of becoming a company valued in the hundreds of billions of dollars.
Speaking with CNBC, GameStop CEO Ryan Cohen described the upcoming deal as massive, saying it could turn out to be either a brilliant move or a complete failure. He did not share specific details about the target company.
Cohen added that the acquisition would be transformational not only for GameStop but also for the wider capital markets, calling it something that has never been done before in market history.
GameStop’s ambitious direction follows a performance-based equity incentive plan introduced in January. Under this program, Cohen will only receive payouts if the company reaches a $100 billion market capitalization and achieves $10 billion in EBITDA.
Since becoming CEO in September 2023, Cohen has focused on reducing costs and improving profitability at GameStop.
In the third quarter of last year, the company reported a 343% jump in net income to $77.1 million, compared to $17.4 million in the same period of 2024. For the first nine months, total net income reached $290.5 million, compared with no profit in the previous year.
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