A memo, sent from the desk of the Chief Executive Officer, from GameStop’s HQ on the moon:
As many of you may know, our stock, $GME, has seen a large increase in share price over the past week. The company’s market cap is now over $12.5B, and we are well-positioned to make a strategic play here to position us for a long and bright future ahead.
After meeting with the board of directors, executives, and strategic partners at the financial institution WSB, I’m pleased to announce that GameStop will acquire Melvin Capital.
The hedge fund was nearing bankruptcy, and we view this as a once-in-a-generation buying opportunity to acquire a company that also knows what it feels like to not have any money.
We were able to shore up enough liquidity for this acquisition by pulling funds from our cash registers at our retail locations. I’m not concerned about needing the money in the registers tomorrow, since nobody comes into our stores anyway.
There will be some synergies from this acquisition, mostly from reducing costs from headcount. However, GameStop will continue to employ Melvin Capital’s founder Gabe Plotkin. He will stay with the company, but transition from his current role of CIO, to Retail Staff. Due to this job change, Gabe will relocate to Mill Hall, PA, working at store 7513.
We firmly believe this is only the beginning of GameStop’s return to dominance, and will continue evaluating all options that could benefit GameStop in the longterm.
Thank you, and if you have any questions, please reach out to our Investor Relations department.
Chief Executive Officer