Michael Burry, the renowned investor who famously foresaw the 2007 housing market collapse, is once again making waves with a provocative idea. Years after cementing his reputation for astute, contrarian bets, Burry has reignited speculation by suggesting that GameStop, the once embattled “meme stock,” might eye major hospitality giants MGM Resorts International and Wynn Resorts for acquisition. This isn’t just a casual thought; it’s framed as a serious consideration in GameStop’s ambitious corporate transformation under CEO Ryan Cohen.
Ryan Cohen’s Grand Ambition: A New Game for GameStop
GameStop’s journey in the early 2020s was largely defined by unprecedented retail investor fervor, catapulting its stock into the volatile world of “meme” assets. Yet, for CEO Ryan Cohen, the vision extends far beyond a fleeting market phenomenon. Cohen is openly pursuing an aggressive strategy to reshape GameStop, aiming to elevate its valuation tenfold to an astounding $100 billion. This audacious goal signals a fundamental shift from its traditional video game retail roots to a diversified, consumer-facing powerhouse.
Burry, a recent accumulator of GameStop shares himself, views his position as a genuine long-term value investment, distinct from any nostalgia for past retail surges. He sees GameStop under Cohen as poised for strategic acquisitions, targeting publicly traded consumer companies that are undervalued, boast durable brands, offer high quality, and possess significant scalability, often with what he terms “sleepy management teams” ready for revitalization. This “Instant Berkshire” strategy, as Burry calls it, involves assembling a portfolio of robust, cash-generative businesses that can fuel future growth and investment, much like Warren Buffett’s Berkshire Hathaway model. Among other rumored targets like ADT and Wayfair, the names MGM Resorts and Wynn Resorts emerged as intriguing, albeit challenging, possibilities.
The Financial Reality Check: Bridging the Gap
While Cohen’s ambition is undeniably vast, the financial undertaking of acquiring companies like MGM or Wynn is immense. As of the close of its third quarter in 2024, GameStop held a substantial $4.616 billion in cash, cash equivalents, and marketable securities. Adding to this, Burry notes that GameStop could potentially unlock an additional $6.1 billion in net cash from its 0% convertible bonds and warrants if its stock price climbs into the $30 range, bringing its total potential funding to roughly $10.7 billion.
However, even with this significant war chest, the scale of the target companies presents a formidable challenge. As of early 2026, Wynn Resorts commands a market capitalization of approximately $11.2 to $11.35 billion, while MGM Resorts International stands at around $9 to $9.17 billion. This means that acquiring Wynn Resorts would essentially consume GameStop’s entire potential acquisition budget, and even MGM would require nearly all of it, leaving little room for error or additional strategic maneuvers. Such a deal would necessitate substantial external financing beyond GameStop’s current capabilities, marking it as a truly audacious move rather than a straightforward cash purchase.
MGM Resorts: A Glimpse into the Digital Frontier
MGM Resorts International, with its globally recognized brand and expansive portfolio of hospitality assets, could indeed hold appeal for an evolving GameStop. The company generates significant cash flow, a key attribute Burry looks for in potential “Instant Berkshire” components. More critically, MGM has made aggressive strides into the digital gaming space through its joint venture, BetMGM, and the acquisition of LeoVegas. This strategic pivot positions MGM as a leader in the rapidly expanding online wagering market, a sector that could align with Ryan Cohen’s background in e-commerce and digital platforms, despite his lack of direct casino operational experience. MGM’s online gambling and sports betting arm, BetMGM, has demonstrated robust growth, with a strong first half in 2025 delivering $109 million in EBITDA and a raised full-year 2025 revenue forecast of at least $2.75 billion and $200 million in EBITDA. BetMGM maintains a strong market position, boasting a 14% gross gaming revenue (GGR) market share across its active U.S. states, including a commanding 22% in iGaming and 8% in online sports betting. Its omnichannel approach, particularly in leveraging its Las Vegas presence, further strengthens its market reach and player engagement. This focus on digital expansion represents a significant technology play within the gaming industry, a realm where GameStop might seek to gain a foothold.
The online gambling market in the United States continues to expand rapidly, driven by the ongoing legalization of sports betting and iGaming across various states. Major players like DraftKings and FanDuel are formidable competitors in this space, constantly innovating and expanding their footprints. MGM’s strategic investment in BetMGM ensures its participation in this growth, allowing it to compete effectively in a landscape where consumer preferences are increasingly shifting towards convenient digital platforms. The digital gaming sector is not only about sports betting but also includes online casinos and poker, offering a diversified revenue stream that can complement traditional brick-and-mortar operations.
Wynn Resorts: The Pinnacle of Luxury and International Reach
Wynn Resorts presents a distinctly different, yet equally compelling, proposition. The company is synonymous with ultra-luxury, operating high-end destination resorts that cater to a discerning clientele. Unlike MGM, Wynn has largely chosen to abstain from widespread online wagering, instead focusing its growth on marquee physical properties and exclusive experiences. Its crown jewels include operations in Macau, a global gaming mecca, and the ambitious Wynn Al Marjan Island project in Ras Al Khaimah, United Arab Emirates.
The Wynn Al Marjan Island resort, an integrated luxury development expected to open in Spring 2027, marks a groundbreaking venture as the UAE’s first legal casino. This $3.9 billion project is a testament to Wynn’s commitment to high-stakes, luxury tourism, featuring 1,542 opulent hotel rooms, 22 private villas, a sprawling 20,900 square meter main casino, and even a unique “sky gaming casino” on the 22nd floor. The UAE’s recent move to introduce comprehensive regulations for legal gambling, with the General Commercial Gaming Regulatory Authority (GCGRA) issuing the first commercial gaming license to Wynn Resorts for this development, signifies a major shift in the region’s legislative landscape, creating a new, tightly controlled market for gaming. This new market presents both immense opportunity and unique regulatory complexities, far removed from GameStop’s current operational scope.
Meanwhile, Wynn’s Macau operations continue to be a significant driver. The Macau gaming market has shown robust recovery, with January 2026 gross gaming revenue surging by 24% year-over-year. While Fitch Ratings anticipates strong revenue from Wynn’s Macau properties through 2026, modest growth is projected through 2028, tempered by the lingering uncertainties in the Chinese economy and intense competitive pressures from rivals like Las Vegas Sands, Melco, and Galaxy. Acquiring Wynn would essentially be a bet on international luxury travel and tightly regulated, high-stakes gaming markets, areas where GameStop currently possesses minimal experience or infrastructure.
Broader Industry Context and Strategic Divergence
The gaming and hospitality industry is a diverse ecosystem, encompassing everything from traditional brick-and-mortar casinos in established markets like Las Vegas and Macau to the burgeoning digital landscape of online casinos and sportsbooks. The potential acquisition of either MGM or Wynn by GameStop would represent a dramatic horizontal diversification, plunging the video game retailer into a fundamentally different business model with distinct operational requirements, regulatory environments, and customer bases. It would demand not just capital, but a profound shift in organizational expertise and strategic focus. For instance, the luxury segment, epitomized by Wynn, thrives on unparalleled service, meticulous attention to detail, and curated experiences for high-net-worth individuals, a far cry from the mass-market appeal of video game sales. Similarly, the complexities of managing multi-jurisdictional gaming licenses, navigating stringent anti-money laundering regulations, and adapting to varying legal frameworks for gambling across states and countries are significant hurdles.
The online gaming sector, while more aligned with Ryan Cohen’s e-commerce background, still operates under a dense web of state-specific legislation in the U.S., with varying rules regarding online sports betting and casino games. Successful operators in this space, such as BetMGM, invest heavily in technology platforms, data analytics for player engagement, and sophisticated marketing strategies. The competitive landscape for online casinos is fierce, with established players and new entrants constantly vying for market share. On a different note, the growth of digital currencies has opened doors to new forms of entertainment, including crypto gambling, which can be explored through our guides like InsideBitcoins’s best crypto poker sites, highlighting the ever-evolving nature of the gaming industry.
Burry himself appears to be acutely aware of the complexities involved. His “Instant Berkshire” concept suggests a preference for acquiring multiple cash-generative businesses rather than a single, high-profile mega-acquisition that could strain GameStop’s resources. His previous divestment of casino stock investments also hints at a cautious approach to the sector. Ultimately, while the idea of GameStop acquiring a hospitality giant like MGM or Wynn is a captivating thought experiment, it underscores the sheer ambition of Ryan Cohen’s transformative vision for the company and the significant strategic, financial, and operational challenges that such a bold move would entail in an already dynamic and highly competitive global industry.
