NEW YORK — GameStop is preparing an offer for eBay, according to a report by The Wall Street Journal, in a move that could mark a dramatic shift in strategy for the video game retailer as it seeks to significantly expand its market value.
The report, citing people familiar with the matter, said GameStop’s leadership has been exploring a potential acquisition as part of a broader effort led by CEO Ryan Cohen to transform the company beyond its traditional brick-and-mortar retail model.
Shares of eBay surged about 14% in extended trading following the report, reflecting investor optimism about a possible deal. GameStop shares also rose roughly 4%.
eBay, an online marketplace connecting buyers and sellers globally, currently has a market capitalization of about $46 billion. GameStop, by comparison, is valued at nearly $12 billion, underscoring the scale and complexity of any potential transaction.
Analysts say a bid of this size would likely require significant financing and could face scrutiny from investors given the disparity in valuations. Still, some view the move as consistent with Cohen’s efforts to reposition GameStop as a broader technology and e-commerce platform.
GameStop rose to prominence in recent years during a surge driven by retail investors, but the company has since faced ongoing challenges tied to declining physical game sales and shifting consumer habits toward digital downloads.
A successful acquisition of eBay could give GameStop access to a massive global user base, established logistics infrastructure and a diversified revenue stream, potentially accelerating its transformation strategy.
However, the discussions remain preliminary, and there is no guarantee that a deal will materialize. Representatives for GameStop and eBay did not immediately respond to requests for comment.
If pursued, the transaction could become one of the most notable deals in the retail and e-commerce sectors in recent years, signaling a bold — and potentially risky — attempt by GameStop to redefine its future.