GameStop's cash pile prompts consideration of large acquisitions, with candidates including Best Buy, Lululemon, and Collector's Universe.

GameStop and CEO Ryan Cohen have built a substantial cash position through years of equity issuance and convertible debt, during a period when the company’s stock price benefited from the meme-trading surge.

At the end of January, GameStop reported $9 billion in cash and marketable securities on its balance sheet, along with an additional $368.4 million in Bitcoin. The company also carries long-term debt of nearly $4.2 billion; however, the notes are convertible and pay no interest, making them more akin to a future equity offering than traditional debt service.

Potential acquisition paths

When Cohen described his goal of finding a large, undervalued consumer business that could help transform GameStop, many investors pointed to Best Buy. Both companies operate in the gaming space, but Best Buy’s broader product assortment would likely come with different growth dynamics.

Any deal involving Best Buy could require GameStop to take on some debt, given the slower growth profile of an electronics retailer. The article argues this would not be an attractive use of GameStop’s cash.

Leaning into collectibles

Cohen has supported GameStop’s turnaround by focusing on collectibles. In 2025, collectibles drove growth, with sales up 47.7%, while other businesses declined.

The article suggests that acquiring Collector’s Universe—described as a roll-up of the trading card grading industry—would be strategically aligned. It notes that GameStop’s turnaround was supported in part by becoming an authorized Professional Sports Authenticator (PSA) dealer, and that expanding further into grading could fit that momentum.

However, the article also states that such a deal may not match Cohen’s stated criteria for acquiring a larger, publicly traded business.

Acquiring a larger, unrelated consumer brand

Cohen has said he plans to buy a “high-quality, durable, scalable” business where the management team has been “asleep at the wheel.” If he is seeking a completely different consumer area and a company larger than GameStop, the article identifies Lululemon as a possible fit.

It cites Cohen’s view that the type of deal he is pursuing “is something that really has never been done before within the history of the capital markets.” With a reported $18 billion market capitalization, Lululemon is presented as aligning more closely with the criteria than Best Buy or Collector’s Universe.

The article further argues that turning around Lululemon could be easier and offer more upside, and suggests a potential longer-term path in which GameStop’s business could later be sold to Collector’s Universe.