GameStop preparing to make a play for eBay, report says
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WebNovare 2 min read
GameStop is looking into a potential acquisition of eBay, The Wall Street Journal reports, citing anonymous sources. The move is said to be part of GameStop CEO Ryan Cohen's strategy to diversify the company's offerings beyond video games. With a market value of $11 billion, GameStop has been accumulating a stake in eBay valued at roughly $45 billion. If eBay does not accept the offer, Cohen may take the proposal directly to shareholders. Both GameStop and eBay shares were up in after-hours trading Friday.
BIG MOVE: GameStop Prepping a Massive Play for eBay!
The rumors are turning into reality. Wall Street is buzzing after reports that Ryan Cohen has been quietly building a stake in $EBAY and is gearing up for a potential takeover offer as early as this month.
This isn't just another trade, it’s a move that could redefine $GME forever.
The Michael Burry Factor
The "Big Short" legend himself is back in the mix. Michael Burry recently disclosed a new position in $GME, framing it as a "long-term value play" rather than a meme bet. Burry noted that Cohen is effectively "making lemonade out of lemons," using GameStop's massive cash pile to hunt for a "real growing cash cow."
The Strategy: David vs. Goliath?
With $EBAY sitting at nearly a $50B market cap and $GME around $12B, the math seems wild. Here’s how the play looks:
• The War Chest: GameStop has stockpiled roughly $9B in cash and securities, giving them serious leverage.
• The Reverse Merger: Given the size difference, many are speculating on a reverse merger or a heavily leveraged stock-for-stock deal.
• The Hostile Option: If the eBay board plays hardball, RC is reportedly ready to take the offer directly to shareholders.
Market Reaction
The "smart money" might have seen this coming. $GME saw steady buying pressure all day, closing up 6%, before tacking on another 7% in after-hours following the WSJ report.
"Ryan Cohen is taking advantage of the meme stock phenomenon to raise cash and wait for an opportunity to make a big buy... GameStop could become a business similar to Berkshire Hathaway." — Michael Burry (Substack)
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