GameStop plans bold move to buy eBay: report

GameStop is reportedly preparing a takeover bid for eBay in a bold move that could reshape the online retail landscape.

The potential deal, driven by GameStop CEO Ryan Cohen, would be highly unusual given the size gap between the two companies. eBay’s market value stands at around $46 billion—nearly four times larger than GameStop’s roughly $12 billion valuation, News.Az reports, citing Reuters.

Investors reacted quickly to the news, with eBay shares jumping sharply in after-hours trading, while GameStop also saw gains. The report says GameStop has already been quietly building a stake in eBay, signaling serious intent ahead of a possible formal offer that could come as soon as this month.

If eBay’s board resists, Cohen may take the proposal directly to shareholders, a move that could escalate tensions and trigger a high-stakes corporate battle. Such a deal would likely require significant financing through debt, stock issuance, or both, betting on future growth to justify the scale of the acquisition.

Cohen, who became CEO in 2023 after joining the board in 2021, has been leading efforts to reinvent GameStop following years of declining sales tied to the shift toward digital gaming. The company has returned to profitability through aggressive cost-cutting, but revenue challenges remain, including a recent drop during the key holiday quarter.

The potential bid is part of a broader strategy tied to Cohen’s ambitious compensation plan, which depends on dramatically increasing GameStop’s market value and long-term earnings performance.

Meanwhile, eBay has been gaining momentum, with its shares rising this year as the company focuses on growth areas such as collectibles, motor parts, and live-streamed auctions.

If pursued, the takeover attempt could mark one of the most unconventional deals in recent years—pitting a former meme-stock favorite against a far larger and more established e-commerce giant.

News.Az 

By Aysel Mammadzada