GameStop Weighs Potential Bid for eBay in Unconventional M&A Move, WSJ Reports

GameStop Corp. is preparing a potential offer for eBay Inc., according to a report by The Wall Street Journal, in a move that could reshape the e-commerce landscape and mark one of the most unusual takeover attempts in recent years.

The reported bid comes as GameStop CEO Ryan Cohen continues efforts to significantly boost the company’s market value. The videogame retailer, currently valued at around $12 billion, is said to be targeting eBay, which has a market capitalization of approximately $46 billion—making the potential acquisition a rare case of a smaller public company pursuing a much larger rival.

Following the report, eBay shares surged about 14% in extended trading, while GameStop stock rose roughly 4%, reflecting investor interest in the potential deal. Sources cited in the report said GameStop has been quietly building a stake in eBay ahead of a possible formal offer, which could be submitted as early as this month.

The report also suggested that if eBay’s management resists the proposal, Cohen could consider taking the offer directly to shareholders—an aggressive strategy that underscores the seriousness of the approach. Neither company nor Cohen immediately commented on the report.

A transaction of this scale would likely require significant financing through debt, stock issuance, or a combination of both, and would hinge on the anticipated synergies and future earnings of the combined entity. Such a move would challenge conventional merger and acquisition norms, where larger firms typically acquire smaller ones.

Cohen, who became CEO in 2023 after joining GameStop’s board in 2021, has led a turnaround effort focused on cost-cutting and operational restructuring, helping the company return to profitability. However, GameStop continues to face structural challenges as the gaming industry shifts toward digital downloads and online platforms, leading to declining store traffic and revenue pressures. The company recently reported a 14% drop in holiday-quarter revenue to $1.10 billion.

In January, GameStop unveiled a performance-based compensation package for Cohen valued at up to $35 billion, contingent on achieving ambitious targets, including raising the company’s market capitalization to $100 billion and delivering $10 billion in cumulative EBITDA.

Meanwhile, eBay has shown signs of steady performance, with its shares rising more than 19% this year. The company recently forecast second-quarter revenue above Wall Street expectations, driven by growth in categories such as collectibles, motor accessories, and live-streamed auctions.

If pursued, the proposed deal would represent a bold strategic pivot for GameStop, signaling its intent to expand beyond its traditional retail roots and reposition itself within the broader digital commerce ecosystem.