GameStop prepares takeover bid for eBay

According to recent reports, GameStop intends to make a takeover bid for eBay. CEO Ryan Cohen, who has ambitious plans to transform GameStop into a "juggernaut" worth more than $100 billion, appears to be pushing ahead with a strategy to expand the company into new markets.

GameStop's financial position

With a market cap of $11 billion at the end of recent trading, GameStop is sitting on a sizeable $9 billion cash pile. That financial strength could allow the company to consider a serious offer for eBay, which has a market cap of around $46 billion. GameStop shares rose 6.33% after news of the takeover plans, while eBay saw gains of more than 11%.

Ryan Cohen is also aiming to increase the value of his stake, which could lead to as much as $35 billion in potential gains if GameStop can lift its market value to $100 billion. Cohen owned more than 9% of GameStop shares in January 2023.

Is GameStop looking to expand beyond gaming?

A move to acquire eBay would give GameStop room to broaden its product offering, helping the company move beyond the limits of traditional video game retail. It would be a major step, especially given that GameStop has faced years of declining revenue and store closures. In the fiscal year ended January 31, 2026, GameStop reported net sales of $3.630 billion, down from $3.823 billion the year before.

Ryan Cohen's role

Ryan Cohen is GameStop's largest individual shareholder and has previously spoken about taking big risks and making major deals. He has said before that he was looking at acquisitions in the consumer and retail sectors. Cohen has also increased his stake in GameStop; he may be able to hold his ground in a competitive market where online shopping is increasingly the norm.

Timeline

May 2, 2026: GameStop is reportedly preparing a takeover bid for eBay.
May 2, 2026: GameStop shares rose 6.33% after the takeover plans became public, while eBay shares climbed more than 11%.
December 2025: GameStop had $9 billion in cash and a market cap of $11 billion, while eBay was valued at $46 billion.

Conclusion

GameStop's plans to acquire eBay are a notable step in the company's evolution, as it continues to face pressure to rethink its operating model. It will be interesting to see how the story develops, especially with the possibility that Cohen could offer a stake to eBay shareholders if the company cannot accept the bid. This acquisition could not only increase GameStop's market power, but also point retail in gaming toward a new future.