GameStop is preparing an offer for eBay as CEO Ryan Cohen pursues plans to boost the struggling videogame retailer’s market value more than tenfold, the Wall Street Journal reported on Friday.
Shares of eBay, which has a market capitalization of about $46 billion, jumped about 10% in extended trading. GameStop gained 7%. The company has a market value of nearly $12 billion.
GameStop has been quietly building a stake in eBay’s shares ahead of a potential offer, the report said, citing people familiar with the matter. It could submit an offer for eBay as soon as later this month.
If eBay is not receptive, Cohen could decide to take the offer directly to the e-commerce company’s shareholders, the Journal said. Details of the potential offer could not be learned, the report added.
The companies and Cohen did not immediately respond to Reuters requests for comment.
GameStop in January unveiled a compensation package worth roughly $35 billion for Cohen, hinging on a turnaround that requires him to lift the struggling videogame retailer’s market capitalization to $100 billion and hit $10 billion in cumulative performance EBITDA (earnings before interest, taxes, depreciation and amortization).
GameStop’s shares have slumped from all-time highs hit in 2021, when it became a retail investor darling during the pandemic-era meme-stock rally.
