Overview
- Following Friday’s Wall Street Journal report, sources said GameStop has built a stake in eBay and could submit a formal offer as soon as later this month.
- eBay shares jumped roughly 10% to 14% in late trading after the report, while GameStop rose about 4% to 7% as investors reacted to the possible deal.
- eBay’s market value is about $46 billion versus roughly $11–12 billion for GameStop, a mismatch that makes such takeovers rare and usually reliant on heavy debt or large stock issuance.
- GameStop finished March with about $9 billion in cash, yet key terms and any funding partners are unknown, and neither company has commented on the report.
- If eBay’s board resists, CEO Ryan Cohen could take a hostile route by pitching the offer directly to shareholders, a push aligned with his pay package that pays out only if GameStop reaches a $100 billion valuation and $10 billion in cumulative EBITDA.