this post was submitted on 08 Dec 2023
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DRS Your GME

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All of GameStop's nearly $1 billion in cash is now at Ryan Cohen's unilateral discretion.

RC can now use GameStop's money to buy stocks of other companies, which may or may not involve any mergers or acquisitions.

What is really interesting and exciting about this, to me, is that it puts "our" money into his hands. It's our money because we are GME investors, and shareholders are the owners of companies, and GameStop's money is part of the shareholder equity that belongs to shareholders.

Ryan Cohen has a vision and a strategy, and access to valuable information, and he does not telegraph his strategy to the competition. We don't know specifically what his intentions are, we don't know specifically what his strategies are.

What we do know is that our interests are in alignment.

We shareholders are in alignment with the RCEO because he is also a (major) shareholder. If RC makes a move that benefits GameStop, it benefits all GME shareholders including himself and us.

If RC takes a strategic investment opportunity, we are all going along for the ride.

This is pretty great, in my opinion, because assuming that you trust RC, it means all a person needs to do is hold GME, and they will get exposure to whatever strategic investments that RC might make. As for me, I trust that RC has a better capability than myself to wisely invest in any non-GME assets.

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[–] Nastybutler@lemmy.world -1 points 11 months ago (2 children)

What will you say if he makes bad investments and loses some/most of that cash? I see a lot of similarities between the WSB deification of Cohen and MAGAs deification of Orange Julius Caesar

[–] Chives@lemmy.whynotdrs.org 11 points 11 months ago

Would definitely be unfortunate. At this point, anyone long GameStop has their wagon pretty clearly hitched to Cohen. Even before this investments policy change, Cohen has had the freedom to issue almost 700mil shares into the market and has not done this. Trust is required, so I assume those long GameStop are comfortable with that risk.

[–] bibic_jr@lemmy.whynotdrs.org 8 points 11 months ago

I wonder if the board was as heavily invested in Orange Julius as GameStop's board is.

Ryan Cohen and Larry Cheng keep buying more shares of GameStop and Ryan Cohen is opting to not receive any payment for his role as CEO, as instead his earnings should come from improving the share value.

So I see Ryan Cohen as very much aligned with shareholders and share value, as he has put his money where his mouth is. It gives me a good amount of confidence with how he decides to invest this money.