GameStop is hungry for relevance. Is buying eBay the answer?

MW GameStop is hungry for relevance. Is buying eBay the answer?

By Bill Peters

GameStop is reportedly interesting in buying eBay, which has done a better job of adapting to changing consumer preferences

Shares of both GameStop and eBay rallied late Friday.

Over the last decade, videogame retailer and original meme stock GameStop has struggled to contend with the dominance of online gaming, and its sales have declined. To turn things around, management is reportedly looking to join forces with a far bigger company: eBay.

Shares of both companies jumped in the extended session Friday after the Wall Street Journal reported that GameStop $(GME)$ was planning to make an offer to acquire eBay $(EBAY)$.

The videogame retailer has already been building a stake in the e-commerce platform, the Journal said, and the reported offer could come later this month. The publication also noted that GameStop CEO Ryan Cohen could take the matter to eBay's shareholders if management pushes back.

Neither company immediately responded to requests for comment. Shares of eBay were up more than 13% in after-hours trading Friday, while GameStop's shares rose nearly 4%.

Any potential move, the Journal noted, would come as GameStop CEO Cohen sets his sights on expanding the company's market valuation to at least $100 billion. He could make up to $35 billion in stock compensation if GameStop's value reaches that $100 billion figure and other targets are hit, the Journal said.

According to Dow Jones Market Data, GameStop currently has a market capitalization of $11.2 billion, while eBay's stands at around $46 billion.

EBay is at least on a better sales trajectory than GameStop: Its revenue was up 19% in its most recently reported quarter relative to a year before, while GameStop's fell 14%. The online marketplace has done a better job of reinventing its business by pushing into artificial intelligence, buying fashion site Depop and embracing collectibles.

Shares of eBay are up 48% over the past 12 months, although it recently announced a round of layoffs.

GameStop's stock is essentially flat over the past 12 months.

-Bill Peters

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May 01, 2026 18:33 ET (22:33 GMT)

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