Shares of eBay and Ryan Cohen-led GameStop surged Friday after a report claimed GameStop is exploring a takeover bid for the online marketplace giant.
According to a The Wall Street Journal report, GameStop has been quietly accumulating an ownership stake in eBay ahead of a possible acquisition attempt.
The report said an official offer could arrive as early as later this month.
GameStop, eBay shares rise
The market reacted immediately to the news. eBay shares jumped roughly 10% in extended trading, while GameStop climbed about 7% as investors weighed the possibility of one of the biggest surprise deals in the retail and e-commerce sectors this year.
The Ryan Cohen factor
The proposed move is tied closely to GameStop CEO Ryan Cohen and his broader effort to dramatically reshape the struggling gaming retailer.
Earlier this year, GameStop approved a compensation package for Cohen reportedly valued at nearly $35 billion, though it is heavily dependent on long-term performance targets.
Those goals reportedly include lifting GameStop’s market valuation to $100 billion while also generating $10 billion in cumulative EBITDA.
Currently, the numbers remain far from that benchmark. GameStop’s market capitalization sits near $12 billion, compared to eBay’s roughly $46 billion valuation.
The Journal report stated that if eBay’s management rejects an initial approach, Cohen could potentially bypass leadership and take the proposal directly to shareholders.
However, details regarding the structure or financing of a potential bid have not yet emerged.
Neither company publicly commented following the report. Reuters noted that representatives for GameStop, eBay and Cohen did not immediately respond to requests for comment.
New GameStop move
The development marks another dramatic turn for GameStop, whose stock became a centerpiece of the pandemic-era meme stock frenzy in 2021. Shares soared to historic highs during that retail-investor rally before later retreating sharply over the following years.
Now, investors appear to be betting that a bold acquisition strategy - particularly one involving a major e-commerce platform like eBay - could become the centerpiece of Cohen’s next attempt to reinvent the company and revive long-term growth prospects.
