To increase value tenfold: GameStop wants to buy eBay

eBay shares jumped around 14 percent in after-hours trading, while GameStop shares rose four percent. Statements from the two companies and from Cohen were initially not available.

Quietly built up a stake in eBay

In advance of a possible offer, GameStop had quietly built up a stake in eBay, the report said. If the trading platform’s management rejects the offer, Cohen could contact eBay shareholders directly. Details of the possible offer, which could be presented this month, are not yet known.

Such a deal would be unusual: It’s rare for a publicly traded company to target a competitor nearly four times its size. While eBay has a market capitalization of around $46 billion, GameStop is only worth just under $12 billion on the stock market.

eBay on course for growth

Cohen, GameStop’s largest investor, joined the board of directors in January 2021 and took over the top position in September 2023. He steered the group back into the profit zone through strict cost reductions. GameStop has struggled with the trend toward online purchases and has had to close numerous stores in the past. In the Christmas quarter, the retailer posted a 14 percent decline in sales to $1.1 billion.

eBay, on the other hand, is currently on a growth path: the company’s shares have increased by more than 19 percent this year. On Wednesday, the platform provided second-quarter revenue guidance that exceeded Wall Street expectations.