GameStop jumps 9% on report it’s preparing bid for eBay

GameStop shares rose more than 9% in after-hours trading after a report said the videogame retailer is preparing a takeover bid for eBay. The report also pushed eBay shares roughly 10% to 15% higher in after-hours trading and drew new activity on retail investor forums.

The stock closed up 6.33% at $26.53 on May 1 on volume near 18.7 million shares. After-hours trades pushed GameStop toward $27.61, extending gains above 9%. eBay’s shares moved sharply higher in after-hours trading amid the takeover speculation.

According to people familiar with the matter, GameStop has quietly built a stake in eBay and could make a formal offer as soon as later this month. The plan would include taking an offer directly to eBay shareholders if eBay’s board does not engage.

The potential bid is linked to a compensation package for GameStop CEO Ryan Cohen that vests if the company reaches a $100 billion market value and $10 billion in cumulative EBITDA. That package could result in up to roughly $35 billion in equity for Cohen if targets are met.

GameStop’s market value is near $12 billion while eBay’s market value is about $46 billion. GameStop holds roughly $9 billion in cash and has a bitcoin treasury, giving the company several financing options. Financing terms for any acquisition have not been disclosed; market analysts say heavy debt or a large stock issuance could be likely if a deal moves forward.

Retail investor communities on Reddit, including r/Superstonk and r/wallstreetbets, posted renewed interest in GameStop and in the possible bid. Investor Michael Burry wrote on social media: “GME and eBAY. Makes perfect sense.” A Reddit user commented that the timing of disclosures followed GameStop’s purchases of eBay shares and options.

Short-interest data from mid-April show about 61.91 million shares shorted, or roughly 15% of the float, leaving the stock sensitive to rapid moves on news. Neither company has commented. Market watchers said investors should look for a 13D filing disclosing a significant stake in eBay or a formal offer from GameStop in the coming weeks.