GameStop Reportedly Preparing Offer to Buy eBay

GameStop is reportedly preparing to make an offer to acquire eBay as part of a broader strategic pivot led by CEO Ryan Cohen. According to reporting from The Wall Street Journal, Cohen aims to transform the video game retailer into a juggernaut with a market value exceeding $100 billion, moving the company beyond its traditional focus on video games and merchandise.

The news sparked immediate movement in the stock market. GameStop shares rose 6.33%, bringing the company’s market value to $11 billion at the close. EBay shares climbed over 11%, resulting in a market value of $46 billion.

The size difference between the two companies is significant, with eBay’s market value being four times larger than that of GameStop. However, GameStop currently holds $9 billion in cash. The Wall Street Journal indicated that if eBay is not receptive to the offer, Cohen may choose to take the proposal directly to eBay shareholders.

Strategic Ambitions and Executive Incentives

The pursuit of a massive acquisition aligns with Cohen’s previously stated goals for the company. In January 2026, the 40-year-old billionaire told The Wall Street Journal that he was seeking a big deal that would ultimately either going to be genius or totally, totally foolish.

There are significant personal financial incentives tied to this expansion. If GameStop’s market value reaches the $100 billion target, Cohen could earn up to $35 billion in stock, subject to other compensation package criteria. As of January 2026, Cohen remained the company’s largest individual shareholder with a stake of over 9%.

Investor Skepticism and Market Position

Not all investors view Cohen’s strategy favorably. Michael Burry, a shareholder in GameStop, offered a critical assessment of the company’s current state earlier in 2026.

Cohen “has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash and wait for an opportunity to make a big buy of a real growing cash cow business.”

Michael Burry, Investor

This skepticism comes amid a period of significant contraction for GameStop’s physical presence. At the start of 2025, the company operated approximately 2,325 locations in the United States. By the end of 2025, GameStop had closed 590 of those stores. The company continued this trend of closing stores in early 2026 to reduce operational costs.

A History of Experimental Pivots

The reported interest in eBay follows several years of attempts by GameStop to find new revenue streams as it struggles with the decline of traditional brick-and-mortar retail. These efforts have often been short-lived or unconventional.

• In August 2023, the company exited the cryptocurrency market.
• A few months after the crypto exit, GameStop shut down its NFT marketplace.
• The company recently held its first Trade Anything Day, an event that allowed customers to bring in any item for trade-in credit. The event reportedly caused dismay among employees, with customers bringing in items such as a bobcat and a goose.

Financial Performance

Recent financial filings show a company in transition. For the financial year ending January 31, 2026, GameStop reported net sales of $3.630 billion, a decrease from the $3.823 billion reported in 2024.

Despite the dip in sales, the company improved its bottom line. GameStop recorded an operating income of $232.1 million for the 2026 fiscal year, a sharp reversal from the operating loss of $26.2 million recorded in fiscal year 2024.