Introduction
According to a recent report from the Wall Street Journal, GameStop CEO Ryan Cohen is reportedly planning to acquire eBay—a company with a market value more than four times GameStop’s. This bold move is part of Cohen’s vision to transform GameStop into a "$100-billion plus juggernaut." While the details of the offer remain unclear, the news has already sent both stocks climbing. Below, we break down the key questions surrounding this potential acquisition, from the financial realities to what it means for the future of GameStop.
Jump to: What exactly is the report about? | Why would GameStop want eBay? | How do the companies’ finances compare? | What challenges has GameStop faced recently? | What do we know about Ryan Cohen’s strategy? | What could happen if the deal goes through? | How have markets reacted to the news? | Are there any other clues about the offer?
1. What exactly is the report about?
The Wall Street Journal, citing sources familiar with the matter, reported that GameStop is preparing to make an offer to acquire eBay, the global digital marketplace. This move aligns with CEO Ryan Cohen’s earlier statement that he was planning a major acquisition that would be "either going to be genius or totally, totally foolish." The offer would be one of the boldest in the company’s history, as eBay’s market value is over four times that of GameStop. Neither company has officially confirmed the report, but the leak has sparked intense speculation about the future of both brands.
2. Why would GameStop want eBay?
GameStop has been struggling as a physical game retailer, closing over 400 U.S. locations this year alone. CEO Ryan Cohen sees a potential acquisition of eBay as a way to pivot the company into a massive e-commerce powerhouse. eBay, with its vast digital marketplace for virtually every category, would give GameStop instant access to a global platform, diversifying its revenue beyond video games and transforming it into a "$100-billion plus juggernaut." Cohen previously hinted at such a bold gambit, suggesting he’s willing to take significant risks to reinvent the company.
3. How do the companies’ finances compare?
The financial disparity is stark. eBay generated $11.1 billion in revenue last year, while GameStop’s net sales for fiscal 2025 came in at just $3.6 billion—a decline from the prior year. However, GameStop did report an operating income of $232.1 million, marking a recovery from years of losses. Still, versus eBay’s market cap—roughly four times larger—GameStop is the clear underdog. To afford such a deal, GameStop would likely need to secure substantial financing or use a mix of stock and debt, which carries significant risk.
4. What challenges has GameStop faced recently?
GameStop has had a tumultuous period. It closed over 400 stores in the U.S. this year as foot traffic in malls dwindles. Meanwhile, its public-relations attempts have been controversial: the "Trade Anything Day" program, which let customers trade non-gaming items, was widely criticized by employees. The company also drew backlash for posting Trump memes on its X (formerly Twitter) account, which many saw as a misguided political stunt. These antics, combined with declining sales, have raised questions about the company’s core strategy.
5. What do we know about Ryan Cohen’s strategy?
Ryan Cohen, the billionaire investor and former Chewy.com co-founder, has been vocal about his ambition to turn GameStop around. Last year, he told the Journal he was considering a major acquisition. His current X feed, however, offers little insight: it largely features jokes about DEI, reactionary jeering, and controversial Trump memes. Despite this, Cohen’s track record with Chewy—which he built into a pet-supply giant before selling to PetSmart—suggests he has a keen eye for digital disruption. Whether that translates to a gaming retailer acquiring a massive marketplace remains to be seen.
6. What could happen if the deal goes through?
If GameStop successfully acquires eBay, the combined entity would instantly become a major e-commerce player, challenging Amazon and Walmart. GameStop could integrate its gaming inventory into eBay’s platform, while leveraging eBay’s massive user base to cross-sell products. However, the enormous debt needed to finance the deal could strain both companies. If the acquisition fails, GameStop would remain a struggling retailer with diminishing physical footprint—and a CEO who took a gamble that didn’t pay off. Cohen himself admitted the move is "either going to be genius or totally, totally foolish."
7. How have markets reacted to the news?
Following the WSJ report, both GameStop and eBay stocks rose. Investors appear to see potential upside in the acquisition, even if it’s a long shot. GameStop’s stock, which has historically been volatile due to meme-stock dynamics, saw a notable bump. eBay’s stock also benefited from the speculation, as a takeover could lead to a premium payout for shareholders. Market reactions suggest that traders are cautiously optimistic, though many analysts remain skeptical about the feasibility of such a deal.
8. Are there any other clues about the offer?
As of now, few specifics are known. The WSJ report did not detail the proposed purchase price or financing structure. Cohen’s X posts—mostly culture-war commentary and Trump memes—offer no strategic hints. However, earlier this year he expressed interest in a bold acquisition, and eBay fits his apparent desire to go big or go home. Until both companies confirm or deny the talks, the public will have to rely on leaks and speculation. For now, the watchword is caution: massive acquisitions often fail to deliver promised synergies, and GameStop’s balance sheet leaves little room for error.