GameStop (GME) is reportedly preparing a formal bid to acquire e-commerce giant eBay (EBAY), according to a May 1 report from The Wall Street Journal. The video game retailer has been quietly building a stake in eBay ahead of a potential offer as part of its plan to expand the business.
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The news triggered a sharp reaction in both stocks during extended trading on Friday, May 1. eBay shares jumped about 12% to close at $104.07, while GameStop rose 4% to $26.53.
GameStop Eyes Expansion Through eBay Bid
The potential acquisition is a central part of GME CEO Ryan Cohen’s effort to reshape GameStop into a broader e-commerce and retail platform.
eBay’s market value stands near $46 billion—almost four times GameStop’s roughly $12 billion valuation—highlighting the scale of the proposed deal. A formal offer could be submitted as soon as this month. If rejected, Cohen may take a more aggressive route and appeal directly to eBay shareholders.
Strong Balance Sheet Supports Ambitious Push
Despite the wide valuation gap, GameStop has spent the past two years strengthening its financial position. As of late March 2026, the company held about $9 billion in cash and equivalents—more than double its level in early 2025—giving it the flexibility to pursue large, transformational deals that were previously out of reach.
This aggressive push is also reflected in CEO Ryan Cohen’s compensation structure. His pay is tied to long-term goals. He gets an initial payout if the company reaches a $20 billion market cap and $2 billion in cumulative EBITDA, with full rewards only if it hits $100 billion in value and $10 billion in EBITDA. This means his gains depend directly on how much the company grows.
For now, the potential deal remains speculative, as neither GameStop nor eBay has officially commented on the reports.
AI Analyst Is Cautious on GME Stock
TipRanks’ AI Analyst maintained a Neutral rating on the stock with a price target of $23.50 per share. The price target suggests about 11.42% downside from current levels.
According to TipRanks’ A.I. Stock Analysis, GameStop stock scores 54 out of 100. The model highlights “improving profitability, stronger cash flow, and a healthier balance sheet” as positives, but weak technical trends and valuation concerns keep the outlook cautious.
