Michael Burry Flags MGM and Wynn as Unlikely GameStop Acquisition Targets

Investor Michael Burry, best known for shorting the housing market ahead of the 2007 real estate bubble collapse, has made another bold move. Years after cementing his reputation, he is once again stirring speculation by flirting with the idea that MGM Resorts International and Wynn Resorts could present an M&A opportunity for none other than GameStop.

GameStop Could Be Seeking Aggressive Expansion

Burry announced his accumulation of GameStop shares, a stock most investors still associate with the meme-driven volatility of the early 2020s. He has explicitly framed his position as genuine, rather than a nostalgia trade or a bet on another retail-fueled surge. Burry believes the company represents a long-term value investment tied to what he views as a changing corporate strategy under CEO Ryan Cohen.

Cohen has been open with his ambitions. He has openly stated his intention to pursue acquisitions that transform GameStop into a business worth ten times its current valuation. Burry identified specific companies that might fit Cohen’s criteria: undervalued, consumer-facing businesses with durable brands and room to scale. Among them, he mentioned MGM Resorts and Wynn Resorts as alternatives to other rumored targets such as ADT and Wayfair.

Despite these ambitions, the gambling giants may be out of GameStop’s reach. The company concluded its third quarter with total cash reserves of approximately $4.5 billion, giving it access to roughly $11 billion after unlocking additional funding from convertible bonds and warrants. That figure barely matches Wynn’s current market value. While MGM is smaller based on market cap, it would still require substantial financing beyond GameStop’s current capabilities.

Wynn and MGM Remain Unlikely Targets

Despite financial challenges, targeting Wynn and MGM makes some sense. The two companies operate well-known hospitality brands, generate substantial cash flow, and are arguably undervalued. MGM, in particular, has invested heavily in BetMGM and LeoVegas, branching out into digital gaming. This online presence may align with Cohen’s background in e-commerce and digital platforms, even if he lacks direct experience in the casino sector.

Wynn presents a significantly larger challenge. The company remains focused on high-end destination resorts and has deliberately stayed out of online wagering. Wynn’s growth relies on high-profile properties, such as Wynn Al Marjan Island in the UAE and continued operations in Macau. Acquiring Wynn would represent a bet on luxury, international travel, and tightly regulated markets, areas where GameStop has little experience.

Burry seems aware of the hurdles. He notes that Cohen might approach multiple companies, assembling a portfolio of cash-generative businesses to fund future growth. However, such a strategy would make a single high-profile acquisition even more unlikely. Notably, Burry has sold all his casino stock investments after previously owning shares in MGM, Wynn, and Las Vegas Sands.