GameStop is reportedly preparing an offer to purchase eBay, a deal that could transform the famous gaming retailer into an industry behemoth worth over $100 billion. As of today, GameStop is valued at around $11 billion.
The retailer has reportedly been quietly building a stake in eBay’s shares ahead of the offer. eBay is reportedly worth $45 billion, significantly larger than GameStop.
The report notes that at the start of the year, GameStop revised Ryan Cohen’s pay package to better motivate him to increase the company’s value and profitability. If specific targets are hit, he could earn up to $35 billion in stock.
GameStop Builds Stake Ahead of Potential eBay Offer
According to a Wall Street Journal report, this strategy is part of GameStop CEO Ryan Cohen’s master plan to transform the GameStop brand into a powerhouse. Following this news, eBay’s shares rose by more than 10% in after-hours trading on Friday, while GameStop’s shares increased by about 5%. GameStop’s shares have increased by approximately 30% this year, partly due to the momentum from Cohen’s deal-making plans.
Cohen had previously shared his desire to acquire a publicly traded consumer company in a January interview with the Journal.
“There are a lot of diamonds in the rough…that have sleepy management teams,” Cohen said at the time. “I didn’t fix GameStop to stop there.”
Reportedly, GameStop could submit an offer for eBay as early as later this month. Insider Gaming will continue to monitor the story and report any details regarding GameStop and a potential eBay purchase.
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