Speculation concerning corporate raider Carl Icahn purchasing a stake in GameStop (NYSE:GME) abounds after activist investor and GameStop Chairman Ryan Cohen posted a picture of the pair on Twitter (NYSE:TWTR). GME stock is up 3.5% so far today in the wake of Cohen’s post.
— Ryan Cohen (@ryancohen) October 18, 2022
Cohen rose to the spotlight after selling Chewy (NYSE:CHWY) to PetSmart for $3.55 billion in 2017. He entered into meme stock territory in August 2020 after purchasing 5.8 million shares of GME stock, equivalent to 9% of shares outstanding.
In January 2021, he was appointed Chairman of the video game retailer. As of March 22, he owns a total of 36.4 million shares of GameStop through his investment firm, RC Ventures, making him the largest shareholder.
Meanwhile, Icahn has been in the public scope for much longer. He founded his first fund, Icahn & Co., in 1968 and later founded Icahn Partners in 2004. Throughout his career, he has taken significant stakes in companies like Netflix (NASDAQ:NFLX), Blockbuster and Lyft (NASDAQ:LYFT), which led to his reputation as the corporate raider.
Icahn stopped managing money for outside investors in 2011 and runs a private hedge fund. However, investors can invest in his company, Icahn Enterprises (NASDAQ:IEP), which has an annual dividend yield of 15%.
GME Stock: Picture of Ryan Cohen and Carl Icahn Stirs Speculation
Speculation is just speculation until it is confirmed, and neither party has issued word on Icahn taking a stake in GME stock. However, retail participants have taken it upon themselves to imagine the possibilities that could arise. One Reddit user posted three scenarios that could potentially occur:
- Icahn takes a stake in GME.
- Cohen and Icahn will spin off Bed Bath & Beyond’s (NASDAQ:BBBY) Buybuy Baby brand. In August, Cohen sold off his entire BBBY stake of about 9.4% million shares, representing an 11.8% stake.
- Cohen will merge GameStop with Baby with Icahn subsequently taking a substantial stake.
Icahn has dealt with retail businesses in the past and boasts a net worth of $18.3 billion, which sits at number 36 on the Forbes 400 list. As of the second quarter, his 13F portfolio had a value of $20.86 billion. His own company, Icahn Enterprises, accounts for 64.06% of his portfolio.
Only time will tell if Icahn actually takes a stake in GME stock, so investors will want to keep an eye out for the latest updates.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.