GameStop (GME) management said in January that the company is looking at a major acquisition. This update was unusual, as it came directly from CEO Ryan Cohen, who said a "very, very, very big" acquisition was in the cards. GameStop holds nearly $9 billion in cash, so Cohen’s comments generated excitement. Since the aim of this acquisition is to generate gains through efficiency and transformation, it's clear that GameStop will look to acquire an entity in distress. Cohen said GameStop is targeting a company with a “sleepy management team.”
There is speculation now that the acquisition target in question could be Best Buy (BBY). But this is just speculation, as GameStop has not confirmed anything. A research note from Don Bilson of Gordon Haskett Research Advisors is what’s creating all the noise, despite not explicitly stating the news. One reason for this speculation is GameStop’s latest 10k filing, wherein the company reported that it added $700 million to a bank account pledged as collateral for some existing transactions.
