GameStop (GME) Stock Surges on Reports of Potential eBay Acquisition Bid

Key Takeaways

• GameStop is reportedly gearing up to submit a takeover proposal for eBay as early as this month.
• Following the news, GME shares increased approximately 5% in after-hours trading while eBay surged over 10%.
• The video game retailer has been discreetly accumulating an ownership position in eBay prior to making a formal proposal.
• Ryan Cohen could pocket as much as $35 billion if GameStop achieves a $100 billion valuation.
• As of late March, GameStop’s cash reserves stood at approximately $9 billion, nearly doubling from $4.8 billion the previous year.

According to sources with knowledge of the situation, GameStop is gearing up to submit a takeover proposal for eBay, marking CEO Ryan Cohen’s ambitious effort to reshape the gaming retailer into a company valued at $100 billion or more.

Shares of GME climbed approximately 5% during Friday’s extended trading session following the Wall Street Journal’s initial report on the matter. eBay’s stock price skyrocketed more than 10% during the same period. At Friday’s market close, GameStop’s market capitalization stood at approximately $11 billion, while eBay commanded a valuation of roughly $45 billion — making it substantially larger than its potential acquirer.

GameStop Corp., GME

In preparation for a possible acquisition proposal, GameStop has been discreetly accumulating shares in eBay. Sources indicate the formal offer could be presented as soon as the end of this month, provided GameStop moves forward with its current strategy.

Should eBay’s management reject the proposal, Cohen may opt to present the acquisition offer directly to eBay’s shareholder base.

Specific financial terms of the anticipated offer remain undisclosed at this time.

Fueled by Deep Pockets and Bold Vision

This potential transaction would represent an unusual development in mergers and acquisitions. It’s uncommon for a publicly traded company to pursue an acquisition target nearly four times its market capitalization. Deals of this magnitude generally require significant leverage or substantial stock-based consideration.

GameStop reported cash holdings of approximately $9 billion as of the end of March, representing a substantial increase from $4.8 billion during the same period last year. This substantial financial reserve provides Cohen with significant acquisition capacity.

Cohen had previously telegraphed his acquisition strategy. During a January conversation with the Wall Street Journal, he disclosed that he was evaluating various acquisition candidates, with particular focus on consumer-facing and retail businesses.

Early this year, GameStop modified Cohen’s compensation structure to provide additional performance-based incentives. Under the revised agreement, he could receive up to $35 billion in equity compensation if GameStop reaches a $100 billion market valuation while generating $10 billion in cumulative EBITDA.

Year-to-date, GME shares have advanced roughly 30%, with momentum partially driven by anticipation surrounding Cohen’s acquisition strategy.

eBay’s Recent Performance

eBay has experienced its own impressive performance trajectory. The e-commerce platform’s shares have climbed more than 19% in 2026 and have appreciated over 50% during the trailing twelve-month period.

The marketplace has been concentrating its efforts on key verticals including collectibles, apparel, and automotive parts. This past February, the company announced its $1.2 billion acquisition of Depop, a pre-owned fashion marketplace, from Etsy.

Just this week, eBay projected second-quarter revenue figures exceeding analyst expectations, attributing the optimistic outlook to expansion in collectibles and live-streamed auction formats.

In contrast, GameStop disclosed a 14% revenue decline to $1.10 billion during its most recent holiday quarter. The retailer has been closing numerous physical store locations as part of its digital transformation initiative.

Cohen initially joined GameStop’s board in January 2021 when the company carried a market valuation of slightly over $1 billion. He assumed the CEO position in September 2023 following a cost-reduction initiative that restored the company to profitable operations.

While GameStop’s stock price hasn’t revisited the peak levels achieved during the 2021 meme-stock phenomenon, Cohen continues to command strong support from retail investors, including Michael Burry, who has publicly advocated for GameStop to deploy its substantial cash reserves toward transformational acquisitions.

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