In a move that could reshape the online marketplace landscape, GameStop Corp. is preparing a takeover offer for eBay Inc., according to a report from the Wall Street Journal on Friday. The news sent eBay shares surging approximately 14% in after-hours trading, while GameStop shares added 4%.
The potential acquisition would pit a $12 billion video game retailer against a roughly $46 billion e-commerce giant. Such a deal, where the target is nearly four times the acquirer's size, is rare in public markets and would likely require significant debt financing, a stock issuance, or a combination of both.
According to the Journal, GameStop has been quietly accumulating eBay shares in recent weeks and could present its proposal directly to eBay shareholders if the board resists. A formal offer may arrive later this month, though no price or financing terms have been disclosed. GameStop CEO Ryan Cohen, the company's largest shareholder, declined to comment, as did representatives from both firms.
The timing is critical for Cohen, who in January received a performance-based option grant tied to a $100 billion market capitalization target for GameStop, along with $10 billion in cumulative performance EBITDA. The company's current market cap hovers around $12 billion, making a transformative deal like this essential to reaching that goal.
GameStop's latest financial results underscore the urgency. Fourth-quarter net sales fell to $1.104 billion from $1.283 billion a year earlier, a 14% decline driven by the shift to digital game downloads and waning interest in brick-and-mortar retail. Net income also slipped to $127.9 million from $131.3 million. However, the company's cash and securities position has swelled to $9.0 billion, up from $4.8 billion, providing a substantial war chest for acquisitions.
eBay, meanwhile, enters the fray on a strong note. The company forecast second-quarter revenue of $2.97 billion to $3.03 billion, slightly above analyst expectations, after reporting first-quarter revenue of $3.09 billion. Gross merchandise volume rose 18% to $22.2 billion. CEO Jamie Iannone highlighted eBay's resilience in a pressured economy, noting that consumers increasingly turn to the platform for value and recommerce. The company also announced it is acquiring Depop from Etsy for approximately $1.2 billion in cash, a move aimed at expanding its presence in the fashion resale market among younger shoppers.
If successful, the merger would steer GameStop deeper into collectibles, resale, and online marketplaces—areas eBay has been actively developing through live auctions, social-commerce partnerships, and investments in fashion resale. However, the risks are substantial. In its annual filing, GameStop cautioned that it cannot guarantee it will find suitable acquisition targets, secure financing, obtain regulatory approvals, or successfully integrate any acquired business.
For GameStop shareholders, the focus has shifted from store closures and cost-cutting to the feasibility of this ambitious deal. For eBay investors, the question is whether a smaller, volatile suitor has the means—and the backing—to offer a credible premium. The outcome could determine whether Cohen's $100 billion plan becomes a reality or remains a distant ambition.
