Ryan Cohen Moves 36.8 Million GameStop Shares To Personal Name, Sparking Speculation On Next Steps

GameStop Corporation GME stock could be back in the spotlight with social media spotting a move made by CEO Ryan Cohen, which comes as the company has been quiet about what it's doing with its large cash balance.

What Happened: A new 13D filing from GameStop CEO Ryan Cohen shows that he has transferred ownership of 36,847,842 GME shares from RC Ventures LLC to his own personal name.

The move shows 8.2% ownership of GameStop in the filing. The transfer also takes the ownership from a Delaware place of organization to Canada, moving the shares to a new country.

"Upon the internal transfer of shares from RC Ventures, an entity holding Mr. Cohen's personal investments and of which Mr. Cohen serves as the manager and is the sole party with a pecuniary interest, to Mr. Cohen," the filing reads.

With the transfer, RC Ventures no longer beneficially owns any GameStop stock.

"The shares beneficially owned by Mr. Cohen were purchased with personal funds (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business). The aggregate purchase price of the 36,847,842 shares beneficially owned by Mr. Cohen is approximately $96,076,057, excluding brokerage commissions."

The reason for the move was not made publicly known, but speculation has begun on social media.

Possible reasons for the move shared on social media include using the shares as collateral, taking GameStop private, making mergers and acquisitions easier with one less corporate layer or for tax strategy.

While the reason for the move is unknown and could just be a strategic decision for Cohen's personal financials, the move comes as GameStop has over $4 billion in cash and has been quiet on what it will be using the cash for.

One widely discussed theory on social media is that GameStop may be considering a merger or acquisition involving a company tied to RC Ventures, potentially explaining the share movement.

Read Also: GameStop PR Blitz Incoming? Here’s What Public Relations Job Opening Says

Why It's Important: Cohen disclosed a 9% stake in GameStop in August 2020 and later increased his stake in the company to 13% later that year.

Cohen later became the chairman of GameStop in June 2021 and was announced as the CEO in September 2023.

GameStop has been one of the most popular stocks in recent years thanks to strong interest from retail traders and a short squeeze that was one of the most talked about financial stories of the last 20 years that became a book, the subject of several documentaries and a major motion picture.

As a retailer that counts on sales of physical gaming items, the company has been the victim of declining sales across several business lines as the gaming sector transitions to more digital sales. The company has diversified into items like collectibles and trading cards, but many investors and analysts want to hear more on the company's growth strategy.

Cohen's move could signal a strategic shift for GameStop, or it might just be a routine filing.

GME Price Action: GameStop stock is up 2% to $28.10 Thursday versus a 52-week trading range of $9.95 to $64.83. The stock is up 93% over the last year.

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