GameStop (GME) Stock Jumps as CEO Eyes eBay Takeover Bid — Here’s What We Know

TLDR

• GameStop is preparing an offer for eBay, potentially as soon as this month.
• GME stock rose ~5% after-hours; eBay jumped over 10% on the news.
• GameStop has quietly been building a stake in eBay ahead of a potential offer.
• CEO Ryan Cohen stands to earn up to $35 billion if GameStop hits a $100 billion market value.
• GameStop held ~$9 billion in cash at end of March, up from $4.8 billion a year earlier.

GameStop is preparing to make an offer for eBay, according to people familiar with the matter, as CEO Ryan Cohen pushes to transform the retailer into a $100 billion-plus company.

GME stock rose around 5% in after-hours trading Friday after the Wall Street Journal broke the story. eBay jumped over 10% in the same session. As of Friday’s close, GameStop had a market value of around $11 billion. eBay’s was roughly $45 billion — several times GameStop’s size.

GameStop Corp., GME

GameStop has been quietly building a stake in eBay ahead of a potential offer. The bid could be submitted as soon as later this month, assuming the company proceeds as planned.

If eBay isn’t receptive, Cohen could take the offer directly to eBay’s shareholders.

Details of the offer terms are not yet known.

A Deal Built on Cash — and Ambition

The move would be a rare one in M&A history. It’s unusual for a public company to target one nearly four times its size. Such deals typically rely on heavy debt or stock issuance.

GameStop held around $9 billion in cash at the end of March, up from $4.8 billion a year ago. That war chest gives Cohen real firepower.

Cohen had already signaled his intentions. In a January interview with the Wall Street Journal, he said he was looking at potential deal targets, particularly in consumer and retail.

At the start of this year, GameStop restructured Cohen’s pay package to give him extra incentive. He stands to make as much as $35 billion in stock if GameStop hits $100 billion in market value and $10 billion in cumulative EBITDA.

GME stock is up roughly 30% so far this year, partly on momentum around Cohen’s dealmaking plans.

eBay’s Own Story

eBay has had a strong run of its own. Its stock is up more than 19% in 2026 and over 50% in the past 12 months.

The company has been focusing on core categories like collectibles, fashion, and motor accessories. In February, it announced a $1.2 billion deal to buy secondhand fashion marketplace Depop from Etsy.

Earlier this week, eBay forecast second-quarter revenue above Wall Street estimates, pointing to growth in collectibles and live-streamed auctions.

GameStop, meanwhile, reported a 14% drop in revenue to $1.10 billion for the holiday quarter. The company has shut many brick-and-mortar locations as it tries to reinvent itself online.

Cohen joined GameStop’s board in January 2021 when the company had a market value of just over $1 billion. He became CEO in September 2023 after steering a period of cost-cutting that returned the company to profitability.

GameStop’s stock has never returned to the highs of the 2021 meme-stock rally, but Cohen has maintained a loyal following among retail investors, including Michael Burry, who has publicly encouraged GameStop to use its cash pile for transformative acquisitions.

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