GameStop is reportedly considering an acquisition of eBay, with discussions potentially moving forward by the end of May, according to the Wall Street Journal. The video game retailer has a market valuation of approximately $11 billion, significantly lower than eBay's $45 billion market cap as of the last trading session.
No formal offer has been made yet, but CEO Ryan Cohen might choose to directly approach eBay's shareholders if the company is unresponsive. Cohen stands to gain $35 billion in stock if he successfully boosts GameStop's market value to $100 billion.
The potential acquisition aligns with Cohen's strategy to shift GameStop's identity beyond its traditional focus on video games and collectibles. Past ventures, such as a failed marketplace for non-fungible tokens and the closure of over 400 stores, highlight the challenges the company has faced as it explores new directions.