GameStop wants to buy eBay — Report
eBay’s share price jumped more than 15% in after-hours trading on Friday after the Wall Street Journal reported that video game retailer GameStop is preparing a bid for the company.
GameStop, led by e-commerce entrepreneur Ryan Cohen, has been building a position in the online auctioneer and may make an offer for the business this month, the newspaper reported, citing unidentified sources.
If eBay isn’t receptive to the deal, Cohen may take his proposal directly to shareholders. Spokespeople for eBay and GameStop didn’t respond to requests for comment. Shares in GameStop also rose.
GameStop had a market value of $11.8 billion before the news broke, while eBay’s was much larger at around $46 billion.
Cohen, the founder of pet supplies e-tailer Chewy, has set ambitious goals for himself.
In January, the company unveiled a compensation package that would reward him with options on over 171 million shares if he lifted GameStop’s market value to $100 billion.
Both companies have struggled to adapt to changing consumer preferences. GameStop has shut stores and emphasised collectable toys and trading cards as more video games are purchased online.
EBay has been pushing collectibles and used goods on its marketplace, which are both relevant to video-game enthusiasts and overlap with the GameStop customer.
Limited releases and hard-to-find items are often sold at a markup on eBay to capitalize on their popularity and scarcity.
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