Key Takeaways
- GameStop is crafting a takeover proposal for eBay, potentially launching within weeks.
- After-hours trading saw GME shares climb approximately 5%; eBay surged more than 10%.
- The video game retailer has been discreetly accumulating an ownership position in eBay.
- Ryan Cohen’s compensation package could net him $35 billion if GameStop achieves $100 billion market capitalization.
- The company’s cash reserves reached approximately $9 billion by late March, nearly doubling from $4.8 billion previously.
According to sources with knowledge of the situation, GameStop is working on a takeover proposal for eBay as CEO Ryan Cohen seeks to expand the retailer into a company valued at over $100 billion.
BREAKING: GameStop is preparing to acquire eBay, a company worth 4 times its own size.
GameStop has a market value of $12 billion. eBay is worth $46 billion. This is CEO Ryan Cohen’s plan to turn GameStop into a $100 billion company.
GameStop was a dying video game retailer… pic.twitter.com/Vl8IsyI6iV
— Bull Theory (@BullTheoryio) May 2, 2026
Following Friday’s Wall Street Journal report, GME shares climbed approximately 5% during after-hours trading. eBay’s stock experienced a similar surge, jumping more than 10% in extended hours. At Friday’s market close, GameStop’s valuation stood at approximately $11 billion, while eBay commanded a market capitalization near $45 billion — making it several times larger than the potential acquirer.
The video game retailer has been discreetly accumulating shares in eBay in preparation for a possible acquisition proposal. Sources indicate the formal bid may be presented later this month, contingent on GameStop moving forward with current plans.
Should eBay’s board reject the proposal, Cohen retains the option of presenting his offer directly to eBay’s investor base.
Specific financial terms of the proposed acquisition remain undisclosed.
Cash Reserves Fuel Ambitious Vision
This potential transaction represents an unusual scenario in mergers and acquisitions. Rarely does a publicly traded entity pursue a target nearly quadruple its own size. Traditional deals of this magnitude typically require substantial debt financing or significant stock dilution.
GameStop reported cash holdings of approximately $9 billion as of late March, a substantial increase from $4.8 billion twelve months prior. This significant capital reserve provides Cohen with considerable acquisition capability.
Cohen had previously telegraphed his strategic direction. During a January conversation with the Wall Street Journal, he discussed evaluating acquisition opportunities, with particular focus on consumer-facing and retail businesses.
Early this year, GameStop modified Cohen’s executive compensation structure to align with aggressive growth targets. Under the revised arrangement, he could receive up to $35 billion in equity compensation if the company reaches $100 billion in market value while generating $10 billion in cumulative EBITDA.
Year-to-date, GME shares have appreciated roughly 30%, driven partially by investor enthusiasm surrounding Cohen’s acquisition strategy.
eBay’s Recent Performance
eBay has experienced its own impressive performance trajectory. The e-commerce platform’s shares have advanced more than 19% in 2026 and climbed over 50% across the trailing twelve months.
The marketplace has concentrated efforts on strategic categories including collectibles, fashion merchandise, and automotive parts. This February saw the announcement of a $1.2 billion acquisition of Depop, a pre-owned fashion platform, from Etsy.
This week, eBay projected second-quarter revenue exceeding analyst expectations, citing momentum in collectibles and live-auction formats.
In contrast, GameStop disclosed a 14% revenue decline to $1.10 billion during its most recent holiday quarter. The retailer has closed numerous physical stores while pivoting toward digital commerce.
Cohen joined GameStop’s board in January 2021 when the company carried a market valuation slightly above $1 billion. He assumed the CEO position in September 2023 following a restructuring period focused on cost reduction that restored profitability.
While GameStop’s share price hasn’t matched the peaks achieved during the 2021 meme-stock phenomenon, Cohen continues to command strong support from individual investors, including Michael Burry, who has publicly advocated for GameStop to deploy its cash holdings toward game-changing acquisitions.
