GameStop shares jump over 9% on report of eBay takeover bid

GameStop shares surged more than 9% in after-hours trading after reports that the videogame retailer is preparing a takeover bid for eBay, a move that would dramatically reshape both companies and reignite the meme stock frenzy.

"GME and eBAY. Makes perfect sense,” remarked Michael Burry, the investor famous for his bet against the housing market, capturing the surprising yet intriguing nature of the potential deal.

Following the report, GameStop's stock jumped toward $27.61 in late trading, while eBay's shares climbed as much as 15%. The bid comes as GameStop, with a market value of about $12 billion, eyes eBay, valued at roughly $46 billion.

The potential acquisition is a high-stakes gamble for CEO Ryan Cohen, whose $35 billion compensation package is tied to achieving a $100 billion market cap. A formal offer could come this month, forcing investors to weigh the strategic vision against the significant financial risks of such a large transaction.

Cohen’s $100 Billion Ambition

The reported takeover is the most aggressive move yet in CEO Ryan Cohen’s quest to transform GameStop from a brick-and-mortar retailer into a diversified technology and e-commerce powerhouse. Analysts at the Bull Theory noted Cohen’s track record, highlighting how he “built Chewy from a small online pet food company into a $40 billion business before selling it.” The potential eBay acquisition is seen as a way to rapidly scale GameStop’s e-commerce footprint, moving it far beyond its legacy video game business and into the broader online marketplace.

This ambition is directly tied to Cohen's compensation, which includes a massive equity package that vests only if GameStop achieves a $100 billion market capitalization and $10 billion in cumulative EBITDA by January 2026. Acquiring a major platform like eBay could be a shortcut toward hitting those lofty goals, though it comes with immense integration risk.

A Tale of Two Valuations

Financing the deal presents a significant hurdle. GameStop, with a market capitalization of approximately $12 billion, would be attempting to acquire a company valued at nearly four times that amount. While GameStop has built a formidable $9 billion cash war chest through aggressive cost-cutting and restructuring, this would only cover a fraction of eBay’s $46 billion valuation.

Analysts suggest that any serious bid would almost certainly require substantial debt financing, significant stock issuance, or both. Such a move could dilute existing shareholders and add considerable leverage to GameStop’s balance sheet, creating new risks for the company that only recently returned to profitability. The company reported a net income of $418 million in fiscal 2025 after years of losses, achieved largely through closing over 1,300 stores and reducing operating expenses.

Meme Stock Frenzy Returns

The news sent shockwaves through the retail investing community that powered GameStop’s historic 2021 short squeeze. Reddit forums like r/Superstonk and r/wallstreetbets lit up with posts framing the bid as the return of meme stock energy under Cohen. The stock’s short interest, while far below its 2021 peak, remains elevated at about 15% of the float, priming it for sharp, volatile moves on any major news.

The speculative fervor also spilled into the cryptocurrency market. A Solana-based meme coin using the GME ticker soared about 54% in the 24 hours following the report, while another token inspired by influencer Keith Gill, known as Roaring Kitty, jumped 55%. This reaction shows the continued, and highly unpredictable, link between GameStop's corporate actions and the behavior of niche, high-risk digital assets. Investors will be watching closely for a formal 13D filing or an official offer in the coming weeks.

This article is for informational purposes only and does not constitute investment advice.