GameStop Eyes eBay Acquisition as Stock Prices Surge After Hours

GameStop Corp (NYSE: GME) shares rose more than 4% in Friday’s after-hours trading following reports that the company is preparing a formal bid to acquire eBay Inc (NASDAQ: EBAY). The news also triggered a sharp rally in eBay stock, which jumped over 12% as investors reacted to the potential merger between the video game retailer and one of the world’s largest e-commerce marketplaces.

According to reports from The Wall Street Journal, GameStop CEO Ryan Cohen is pursuing the deal as part of a broader strategy to transform the company into a retail powerhouse valued at over $100 billion. Sources familiar with the matter suggest that GameStop has quietly accumulated a stake in eBay ahead of a possible acquisition offer.

The potential deal aligns with GameStop’s recent shift toward high-end collectibles and gaming memorabilia, a segment that overlaps strongly with eBay’s core business. eBay remains a dominant global platform for resale goods, including rare collectibles, making the acquisition strategically attractive for expanding GameStop’s digital presence.

Despite the size gap—GameStop’s market capitalization sits near $12 billion compared to eBay’s roughly $46 billion—the retailer has strengthened its financial position with approximately $9 billion in cash reserves as of March. This liquidity could support a significant acquisition attempt.

Reports indicate that a formal proposal could be submitted to eBay’s board later this month. If rejected, Cohen may take the offer directly to shareholders, potentially setting the stage for a proxy battle. Investor attention is now focused on how eBay’s leadership will respond.

Cohen’s incentive structure further underscores the ambition behind the move. His compensation package could yield up to $35 billion in stock if GameStop reaches a $100 billion valuation, reinforcing his commitment to aggressive expansion in the retail and e-commerce sectors.