In a move that has sent shockwaves through the retail and tech sectors, GameStop is reportedly preparing to make an offer to buy eBay. According to The Wall Street Journal, CEO Ryan Cohen aims to transform the gaming retailer into a massive $100 billion-plus "juggernaut" that extends far beyond its traditional video game and merchandise roots.
The Strategy Behind GameStop Preparing to Buy eBay
While the idea of GameStop preparing to make an offer to buy eBay may seem unlikely due to the scale difference, the financial math is intriguing. Currently, GameStop holds a market value of $11 billion, with shares jumping 6.33% following the news. In contrast, eBay maintains a market value of $46 billion and saw its stock climb over 11%.
Despite eBay being four times larger than GameStop, the retailer is sitting on $9 billion in cash. If eBay’s leadership proves unreceptive to the proposal, Cohen may take his offer directly to eBay’s shareholders, as noted by The Wall Street Journal.
Ryan Cohen's High-Stakes Vision
Cohen’s compensation package is tied heavily to this aggressive growth strategy. If the company’s market value reaches $100 billion, he could earn up to $35 billion in stock based on specific performance criteria. This aligns with his mindset shared in January, where the billionaire described his pursuit of a "big" deal as something that would be "ultimately either going to be genius or totally, totally foolish."
As of January, Cohen remains GameStop’s largest individual shareholder with over a 9% stake. However, not all investors are convinced by this expansionist strategy. Michael Burry, a prominent investor and GameStop shareholder, previously suggested that Cohen is leveraging the "meme stock" phenomenon to accumulate cash for a "real growing cash cow business."
Recent Financial Performance and Retail Shifts
The push for acquisition comes amidst a period of significant restructuring and store closures. To reduce costs, GameStop has been scaling back its physical footprint:
- Started 2025 with approximately 2,325 U.S. locations.
- Closed 590 stores by the end of 2025.
- Continued further closures into early 2026 to further reduce overhead.
This restructuring follows several experimental revenue attempts. After exiting the crypto market in August 2023 and shutting down its short-lived NFT marketplace, the company even held a controversial "Trade Anything Day," which allowed customers to trade in literally anything for store credit.
Financially, the 2025 fiscal year (ending January 31, 2026) showed mixed results. Net sales dropped to $3.630 billion from $3.823 billion in 2024. However, the company achieved an operating income of $232.1 million, a notable recovery from the $26.2 million operating loss seen in fiscal year 2024.
