GameStop Eyes eBay Takeover As CEO Ryan Cohen Chases $100 Billion Valuation: Report – eBay (NASDAQ:EBAY)
GameStop has been quietly building a stake in eBay ahead of a potential offer, The Wall Street Journal reported on Friday, citing sources.
| Company | Market Cap | 52-Week High | 52-Week Low |
|---|---|---|---|
| GameStop | $11.90B | $35.81 | $19.93 |
| eBay | $46.21B | $107.34 | $65.01 |
GME shares rose 3.96% while EBAY surged 11.82% in after-hours trading following the report.
Cohen Eyes eBay Directly
Details of the potential offer could not be learned. If eBay is not receptive, Cohen could take the offer directly to shareholders, the Journal reported.
According to an SEC filing, eBay had 448 million shares of common stock issued and outstanding as of Feb. 13.
Cohen had signaled the move in January, saying he was considering a significant acquisition of a publicly traded company in the consumer or retail sector, calling it either “genius or totally, totally foolish.”
GameStop and eBay did not immediately respond to Benzinga‘s requests for comment.
Cohen’s $35B Pay Package Hinges On $100B Turnaround
Cohen joined GameStop’s board in January 2021 and became CEO in September 2023, steering the company to profitability through aggressive cost-cutting. In January, GameStop unveiled a roughly $35 billion compensation package for Cohen, contingent on hitting $10 billion in cumulative EBITDA.
In March, GameStop reported fourth-quarter results in which the omnichannel retailer of video games, consumer electronics, and gaming merchandise posted revenue of $1.10 billion, missing analyst estimates of $1.47 billion by 24.73%, while earnings per share of $0.49 beat the consensus estimate of $0.31 by 58.06%.
Inside GameStop’s Reinvention
On the retail side, GameStop is rolling out dedicated retro gaming sections across all U.S. stores by early May, targeting a global retro console market projected to reach $8 billion by 2033, with margins the company said are in line with its pre-owned business.
Price Action: On Friday’s close, GME was trading at $26.53, up 6.33%, while EBAY closed at $104.07, up 0.57%, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
