GameStop is Preparing an Offer to Acquire eBay

GameStop is reportedly preparing an offer to acquire eBay, according to the Wall Street Journal, with Reuters reporting that the company has been quietly building a stake in the online marketplace and could bring a proposal as soon as later this month.

The report sent both stocks higher in after-hours trading, with eBay up about 9% and GameStop up about 3% when the news broke.

If GameStop moves forward, the deal would be unusual even by the standards of recent retail and tech M&A.

Reuters said eBay has a market value of about $46 billion, compared with roughly $12 billion for GameStop, which means the buyer would be far smaller than the target.

Reuters also said any bid would likely rely on debt and stock issuance, and that GameStop could take the proposal directly to eBay shareholders if management resists.

The reported move fits with Ryan Cohen’s broader push to remake GameStop beyond video games and collectibles.

In a January press release, GameStop said the board granted Cohen a performance award that is 100% “At-Risk” and tied to “achieve extraordinary growth.”

The company said the award would vest only if GameStop reaches a $100 billion market capitalization and $10 billion in cumulative performance EBITDA.

Neither GameStop nor eBay has publicly confirmed the reported deal talks.

Reuters said both companies did not immediately respond to requests for comment, leaving the report unconfirmed for now as investors wait to see whether GameStop files anything with regulators or speaks on its own behalf.