GameStop is a SPAC now

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GameStop stock graph is seen in front of the company's logo in this illustration taken February 2, 2021. REUTERS/Dado Ruvic/Illustration

LONDON, June 22 (Reuters Breakingviews) - Two hot stock-market trends have collided. GameStop (GME.N), the original meme stock read more , is now a sort of SPAC.

The video-game retailer has used this year’s 11-fold increase in its market capitalization to transform itself. Firstly, with new management, including Chief Executive Matt Furlong, an (AMZN.O) alum. And secondly, with cash from issuing new shares: $552 million in April, and $1.1 billion more this month read more .

GameStop is now a pile of money with a chain of stores attached. Cash now makes up half the company’s enlarged balance sheet, compared with 13% at the median U.S.-listed company, according to Refinitiv data. By investing that in technology, new products and even blockchain efforts, Furlong hopes to turn GameStop into a totally different business.

If the idea of a listed company full of cash looking to become something else sounds familiar, it’s because it’s also the idea behind special-purpose acquisition companies. Happily, GameStop comes without the fees and warrants that dilute investors in SPACs. Unhappily, it comes with a $14 billion market capitalization, which might make it the priciest cash shell going. (By John Foley)

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