GameStop is exploring a deal that could change its direction in e-commerce, with interest in acquiring a company significantly larger than itself. According to people familiar with the matter, the retailer is considering a potential offer for eBay as CEO Ryan Cohen works to expand the company’s online reach beyond its traditional retail base.
GameStop’s market value is about $12 billion, compared with roughly $46 billion for eBay. Even so, people familiar with the matter say GameStop has been quietly accumulating a stake in eBay ahead of a possible offer, suggesting CEO Ryan Cohen is pursuing a more aggressive strategy rather than a gradual expansion in e-commerce.
Markets reacted swiftly following the report. eBay shares rose more than 10% in after-hours trading, while GameStop gained about 5%, as investors weighed both optimism and uncertainty around what such a deal might ultimately entail.
eBay offers well-developed infrastructure, including tools for payments, search, seller management, and category oversight. This is especially strong in collectibles and fashion, two areas where GameStop has been gradually building its online presence.
Cohen has been open about his plans. In late January, he told The Wall Street Journal that he was evaluating potential targets in consumer and retail to support the company’s expansion. This approach is also reflected in his compensation, which was updated earlier this year to tie potential payouts, reportedly up to $35 billion in stock, to ambitious milestones, including a $100 billion valuation goal.
Financing a deal of this size would depend largely on GameStop’s balance sheet. The company held around $9 billion in cash at the end of March, compared to $4.8 billion the previous year, offering some flexibility. Even so, acquiring eBay would likely require more than its available cash, meaning a mix of stock and possibly shareholder involvement if the deal faces resistance from eBay’s board.
This scenario is being viewed as a real possibility. If eBay’s board is not supportive, Cohen could take the proposal directly to shareholders. The outcome would help show whether both institutional investors and GameStop’s retail-heavy base are aligned with this strategy.
Both stocks have performed strongly in recent months. GameStop is up about 30% this year, with gains partly driven by expectations around potential deals. eBay, meanwhile, has risen more than 50% over the past year as it shifts toward higher-value categories, highlighted by its $1.2 billion acquisition of Depop to expand into secondhand fashion and attract younger users.
An acquisition of eBay would allow GameStop to bypass years of costly infrastructure development. Instead of building payments, trust systems, and seller networks from the ground up, the company would gain access to a platform already operating at a global scale. The challenge, however, would lie in integrating systems and user communities designed for different business models.
Cohen has a track record of taking long-term bets. As co-founder of Chewy, he built an e-commerce business centered on logistics and customer experience well before many traditional retailers had established a clear online strategy. His early criticism of GameStop focused on its slow shift into e-commerce, an argument that helped secure him a board seat in 2021, when the company’s valuation was just above $1 billion.
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