Key Highlights
- GameStop plans to submit an acquisition proposal for eBay, possibly within the coming weeks.
- After-hours trading saw GME shares climb approximately 5%; eBay surged more than 10%.
- GameStop has been accumulating eBay shares in preparation for a formal acquisition proposal.
- Ryan Cohen’s compensation structure could deliver him $35 billion when GameStop achieves $100 billion market capitalization.
- The company’s cash reserves reached approximately $9 billion by late March, nearly double the $4.8 billion held twelve months prior.
GameStop intends to submit an acquisition proposal for eBay, sources close to the situation have revealed, as CEO Ryan Cohen advances his strategy to elevate the retailer into a company valued beyond $100 billion.
Following the Wall Street Journal’s Friday report, GME shares climbed approximately 5% during after-hours trading. eBay experienced an even sharper rise, jumping more than 10% in the same period. Friday’s closing valuations placed GameStop at roughly $11 billion in market capitalization, while eBay commanded approximately $45 billion — making it multiple times larger than GameStop.
GameStop has been discreetly accumulating an ownership position in eBay in anticipation of making a formal proposal. The company may present its bid before the month concludes, provided current plans move forward.
Should eBay’s leadership reject the proposal, Cohen maintains the option to appeal directly to eBay’s shareholder base.
Specific financial terms of the proposed acquisition remain undisclosed.
Cash Reserves Fuel Ambitious Expansion Strategy
This prospective transaction represents an uncommon scenario in mergers and acquisitions. Public companies rarely pursue acquisition targets approaching four times their own valuation. Traditional deals of this magnitude typically require substantial debt financing or significant stock-based consideration.
GameStop maintained cash holdings of approximately $9 billion at the conclusion of March, representing substantial growth from $4.8 billion one year earlier. This financial reserve provides Cohen with considerable acquisition capacity.
Cohen had previously telegraphed his acquisition ambitions. During a January conversation with the Wall Street Journal, he disclosed his evaluation of prospective acquisition candidates, with particular interest in consumer and retail sectors.
Early this year, GameStop revised Cohen’s compensation agreement to align incentives with aggressive growth targets. His potential earnings could reach $35 billion in equity compensation when GameStop achieves $100 billion in market valuation alongside $10 billion in cumulative EBITDA.
GME shares have appreciated roughly 30% year-to-date, driven partially by enthusiasm surrounding Cohen’s acquisition initiatives.
eBay’s Recent Performance and Strategic Direction
eBay has demonstrated impressive momentum. The company’s shares have advanced more than 19% throughout 2026 and climbed over 50% across the trailing twelve months.
The marketplace platform has concentrated efforts on primary categories including collectibles, fashion merchandise, and automotive accessories. February brought announcement of a $1.2 billion transaction to acquire Depop, a secondhand fashion marketplace, from Etsy.
This week, eBay projected second-quarter revenue exceeding analyst expectations, citing expansion in collectibles and live-auction streaming formats.
GameStop recently disclosed a 14% revenue decline to $1.10 billion during the holiday quarter. The retailer has closed numerous physical store locations while pivoting toward digital commerce.
Cohen assumed a GameStop board position in January 2021 when the company carried a market valuation just above $1 billion. He transitioned to the CEO role in September 2023 following a period of operational streamlining that restored profitability.
While GameStop shares remain below the peaks reached during the 2021 meme-stock phenomenon, Cohen retains strong support among retail investors, including Michael Burry, who has publicly advocated for GameStop to deploy its cash reserves toward transformational acquisitions.
