GameStop preparing an offer to buy eBay in effort to boost market value: report

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According to a report by the Wall Street Journal, GameStop is gearing up to make an offer for eBay as CEO Ryan Cohen aims to increase the struggling video game retailer’s market value by more than tenfold.

Following this news, eBay’s shares saw a 10% surge in extended trading, while GameStop also experienced a 7% increase. With eBay currently holding a market capitalization of around $46 billion and GameStop standing at nearly $12 billion in market value, the potential offer could significantly impact both companies.

Insiders have revealed that GameStop has been quietly accumulating a stake in eBay’s shares in preparation for the offer, which could be submitted as early as later this month. If eBay proves unreceptive, Cohen may choose to directly engage the e-commerce company’s shareholders with the offer.

Details of the potential offer remain undisclosed, and neither the companies involved nor Cohen have provided immediate comments in response to requests from Reuters.

GameStop is preparing to make an offer for eBay, as reported by the Wall Street Journal. GameStop has been quietly building a stake in eBay’s shares Stephen Yang for the New York Post

The potential acquisition comes at a time when GameStop is focusing on a turnaround strategy, evident in the $35 billion compensation package offered to Cohen in January. This package is contingent on GameStop’s market capitalization reaching $100 billion and achieving $10 billion in cumulative performance EBITDA.

While GameStop’s stock has dipped from its peak in 2021, when it gained popularity among retail investors during the meme-stock craze, the company’s move to acquire eBay could mark a significant shift in its trajectory.