Can a former e‑commerce wunderkind turn a meme‑stock relic into a $100 billion company? That’s the razor‑thin bet GameStop’s board has placed on CEO and chairman Ryan Cohen.
GameStop filed a plan that hands Cohen a colossal, performance‑based stock option award — roughly 171.5 million options exercisable at $20.66 a share — that only pays out if the company hits two extreme thresholds: a $100 billion market capitalization and $10 billion in cumulative performance EBITDA. There’s no partial credit; miss the minimum floors ($20 billion market cap and $2 billion EBITDA) and nothing vests. Shareholders will vote on the package at a special meeting expected in March or April.
What the package actually does
On paper it looks like a Tesla‑style, moonshot incentive: no salary, no guaranteed cash bonuses, no time‑vesting grants — all compensation is "at risk." If the targets are met, the award’s headline market value approaches tens of billions of dollars (Reuters and other outlets have pegged headline figures near $35 billion), though Cohen would still face the exercise cost and taxes. He already owns a meaningful stake in the company, so a big valuation spike benefits him beyond this award.
That structure is designed to align Cohen’s upside with shareholders’ — but it also reads like a courtroom challenge to reality. GameStop today has a market cap roughly in the low billions, not hundreds. Its retail footprint and legacy business face secular headwinds as gamers buy digitally and big platforms deepen their hold on the market.
Why the targets are daunting
A jump to $100 billion means multiplying current value many times over. To get there, GameStop would need not just a better balance sheet but a transformed business model with recurring revenue streams and margins that justify the valuation. The company has tried diversifying — collectibles, trading cards, scaled back stores, and even some bitcoin buys — and it has returned to profitability after aggressive cost cuts. Still, recent years show steep revenue declines and a far lower share price than the 2021 meme peak.
Consider the competitive landscape: platform holders, digital storefronts, subscription services and secondhand online marketplaces all pressure margins and foot traffic. Conversely, hardware cycles and renewed interest in physical retail can help. Big console refreshes and hot game launches often lift accessory and physical sales; remember how console momentum can ripple through retail in ways that benefit brick‑and‑mortar chains during a strong cycle. For context on how powerful a console cycle can be, look at the recent surge in demand for Nintendo’s Switch 2 and its effect on the broader market.
What would need to change
To clear a $100 billion valuation, GameStop would likely need to combine multiple strategies that scale:
- Turn collectibles and trading cards into high‑margin, repeatable commerce with strong online platforms and community hooks.
- Build subscription or digital services that deliver recurring revenue, not just one‑off retail transactions.
- Expand into higher‑margin adjacent markets — whether esports, digital distribution, or content — and prove sizable gross margins.
- Show consistent, multi‑year EBITDA growth that approaches the plan’s cumulative target.
Small moves won’t suffice. The plan demands extraordinary growth, not incremental improvements.
The political and PR angle
This is also a statement. By making compensation entirely performance‑based, GameStop’s board signals confidence in Cohen’s strategy while shielding the company from conventional executive pay criticism. The structure echoes high‑risk, high‑reward packages seen at other growth companies and gives activists and fans a dramatic narrative: Cohen either builds something transformative or gets nothing.
Investors will watch how the company communicates a clear path from current initiatives to the scale implied by the award. So far, moves like store rationalizations and a push into collectibles are incremental; the missing piece is a repeatable, defensible business model that scales to billions in EBITDA.
Why traders and gamers care
Beyond boardroom drama, the award matters because it can influence behavior across the investor base that made GameStop famous. Retail traders, long attracted to the stock’s story, may respond to the headline potential even if the underlying business remains challenging. Meanwhile, hardware and digital distribution trends will shape GameStop’s prospects—things like strong console cycles or shifts in PC handheld usage can help or hurt retail demand; see how handheld and download features have evolved on devices such as the Steam Deck.
If you’re interested in how hardware cycles affect retailers, the recent lift in demand for Nintendo’s Switch 2 is a useful reference point (and an example of why console momentum still matters) Nintendo's Switch 2 sales surge. Similarly, developments in PC handhelds and download behavior can alter where gamers buy, which is why features enabling low‑power downloads on devices are relevant to any retail thesis Steam Deck low‑power download mode.
A final note: if you’re trying to picture retail’s future, also remember the role of major platform launches and hardware demand — a big new console cycle, including next‑generation models such as the PS5 Pro, changes the backdrop for a company that still sells hardware and accessories.
GameStop’s new package is dramatic by design. It hands Cohen a cliff‑edged incentive to reimagine a business that once briefly captivated retail investors and then endured a punishing market correction. Whether that incentive becomes the spark for extraordinary growth or simply a headline that fades with the next earnings report remains the story investors will be watching closely.