Key Takeaways
- GameStop is working on a takeover proposal for eBay, potentially launching it within weeks.
- GME stock climbed approximately 5% in after-hours trading; eBay shares surged more than 10%.
- The video game retailer has been discreetly accumulating shares in eBay before making a formal bid.
- Ryan Cohen could pocket as much as $35 billion if GameStop reaches a $100 billion valuation.
- The company’s cash reserves stood at roughly $9 billion as of late March, nearly double the previous year’s level.
GameStop is gearing up to submit a takeover proposal for eBay, sources with knowledge of the situation report, as CEO Ryan Cohen works toward his goal of building the retailer into a company worth over $100 billion.
Shares of GME climbed roughly 5% during after-hours trading Friday following the Wall Street Journal’s initial report. eBay’s stock surged more than 10% in the extended session. GameStop’s market capitalization stood at approximately $11 billion as of Friday’s closing bell, while eBay commanded a valuation near $45 billion — making it multiple times larger than its potential suitor.
The video game retailer has been stealthily acquiring a position in eBay in preparation for a possible acquisition offer. The proposal might be presented as early as the coming weeks, provided GameStop moves forward with its current strategy.
Should eBay’s board reject the approach, Cohen maintains the option to bypass management and appeal directly to eBay’s shareholder base.
Specific financial terms of the prospective offer remain undisclosed at this time.
Cash Reserves Fuel Bold Acquisition Strategy
This type of transaction would mark an uncommon occurrence in merger and acquisition activity. It’s rare to see a publicly traded entity pursue a target nearly quadruple its own size. Transactions of this magnitude usually require substantial borrowing or significant equity offerings.
GameStop reported cash holdings of approximately $9 billion at the conclusion of March, representing a significant increase from $4.8 billion twelve months prior. This substantial treasury provides Cohen with considerable acquisition capacity.
Cohen had previously telegraphed his acquisition appetite. During a January conversation with the Wall Street Journal, he revealed his interest in evaluating potential acquisition opportunities, with particular focus on consumer-facing and retail businesses.
Early this year, GameStop modified Cohen’s compensation structure to create additional performance incentives. Under the revised arrangement, he could receive up to $35 billion in equity compensation if GameStop achieves a $100 billion market capitalization along with $10 billion in aggregate EBITDA.
GME stock has appreciated approximately 30% year-to-date, driven partially by investor enthusiasm surrounding Cohen’s acquisition ambitions.
eBay’s Recent Performance
eBay has delivered impressive returns recently. The e-commerce platform’s shares have advanced more than 19% during 2026 and climbed over 50% across the trailing twelve months.
The marketplace has concentrated its efforts on priority segments including collectibles, apparel, and automotive parts. In February, the company announced it would acquire Depop, a pre-owned fashion platform, from Etsy for $1.2 billion.
Just days ago, eBay issued second-quarter revenue guidance exceeding analyst expectations, citing strength in collectibles and live-auction formats.
GameStop, by contrast, disclosed a 14% revenue decline to $1.10 billion during its most recent holiday quarter. The retailer has closed numerous physical stores as part of its digital transformation initiative.
Cohen joined GameStop’s board of directors in January 2021 when the company’s market value barely exceeded $1 billion. He assumed the CEO role in September 2023 following a period of aggressive expense reduction that restored profitability.
While GameStop’s stock price hasn’t reclaimed the peaks reached during the 2021 meme-stock phenomenon, Cohen continues to command strong support from retail shareholders, including Michael Burry, who has publicly urged GameStop to deploy its cash position toward transformational acquisitions.
