GameStop’s dramatic journey shows no signs of slowing down, as the Wall Street Journal recently revealed that the retailer is gearing up to submit a bid to purchase eBay. Although a formal proposal has not yet been filed, the report indicates GameStop might present a buyout deal “as soon as later this month.”
According to the WSJ, GameStop’s market capitalization was approximately $11 billion, whereas eBay stood at a significantly higher $45 billion as of Friday’s market close. While specific terms of the potential deal remain undisclosed, the WSJ noted that if eBay’s board does not respond favorably, CEO Ryan Cohen could bypass them and take the proposal directly to eBay’s shareholders.
Notably, Cohen stands to receive up to $35 billion in stock if he successfully boosts GameStop’s market value to $100 billion. Purchasing eBay could also serve as a strategic move within Cohen’s broader vision to transform GameStop’s identity beyond its traditional image as a video game and collectibles shop.
Despite these ambitions, GameStop has faced numerous challenges in recent years. In 2022, the company launched a marketplace for non-fungible tokens, which was eventually shut down a couple of years later. More recently, GameStop announced its plans to pivot towards retro gaming at select locations. While the company is still throwing ideas at the wall and seeing what sticks, it also closed down more than 400 retail locations across the US earlier this year.