GameStop is reportedly preparing a potential offer for eBay, a move that could become one of the most unconventional takeover attempts in recent corporate history if pursued.
According to the Wall Street Journal, GameStop CEO Ryan Cohen has quietly built a stake in eBay while exploring a possible bid that could be presented later this month. The report suggests Cohen may even appeal directly to eBay shareholders if the company resists.
The scale of such a transaction would be extraordinary. eBay’s market capitalization is roughly $46 billion, nearly four times larger than GameStop’s approximately $12 billion valuation. That size gap means any deal would likely require substantial debt, major stock issuance, or both — a high-risk strategy that would test investor confidence in Cohen’s long-term transformation plans.
Cohen, who became GameStop CEO in 2023, has focused heavily on cost-cutting and profitability after years of decline caused by digital gaming distribution and shrinking physical retail relevance. While GameStop returned to profitability, its holiday-quarter revenue still fell 14%, underscoring the pressure to find larger-scale reinvention opportunities.
A successful eBay acquisition could dramatically reposition GameStop from a struggling gaming retailer into a broader e-commerce and collectibles powerhouse. However, the financial and strategic risks are immense, especially given GameStop’s meme-stock legacy and Cohen’s ambitious compensation package, which reportedly depends on boosting the company’s market value to $100 billion.
eBay shares surged about 14% following the report, while GameStop also gained in after-hours trading, signaling that markets are taking the possibility seriously despite the deal’s unusual structure.
If pursued, the move would represent a radical departure from traditional M&A norms and could define whether Cohen’s GameStop strategy is visionary or dangerously overextended.
