GameStop is gearing up to make an offer for eBay as Cohen aims for a $100 billion valuation.

      The video game retailer rescued from demise by meme traders is now setting its sights on one of the internet's oldest platforms. According to a Wall Street Journal report dated May 1, 2026, GameStop Corp is preparing to place a bid for eBay Inc, causing eBay's shares to rise over 13% in after-hours trading.

      This initiative marks a significant step in CEO Ryan Cohen’s efforts to transform a struggling physical retail chain into a diverse e-commerce entity, while also testing Wall Street's willingness to support one of the most unlikely corporate transformations seen in recent times.

      eBay's market capitalization is approximately $46 billion, while GameStop’s stock market valuation was around $12 billion prior to the announcement. This disparity clearly indicates that Cohen is not proposing a merger of equals; he is targeting a company nearly four times larger than GameStop.

      A strategic build-up ahead of a formal proposal, as reported by the Journal, indicates that GameStop has been quietly acquiring eBay shares. Details concerning the proposed deal's structure or terms have not been disclosed, but sources suggested that an offer could be made as soon as later in May. Should eBay’s board not be amenable, Cohen is ready to present the bid directly to the shareholders.

      Funding for such a deal would largely come from GameStop’s own financial reserves. The company reported approximately $9 billion in cash and investments at the end of the first quarter of 2026, a notable increase from $4.8 billion the previous year, achieved through equity offerings and a strategic withdrawal from unprofitable retail ventures.

      While this amount alone wouldn't fully cover eBay's valuation, it demonstrates Cohen’s ability to finance a significant part of the deal without severely diluting shareholder value.

      Cohen, the Canadian entrepreneur who founded the pet supplies e-commerce site Chewy and later became GameStop's chairman and CEO, has been transparent about his ambitions. In January 2026, GameStop's board approved a performance-based stock option plan estimated by analysts to be worth roughly $35 billion if fully earned, structured in nine phases tied to incremental market capitalization and earnings targets.

      The most challenging goal requires GameStop to achieve a $100 billion market valuation and generate $10 billion in cumulative EBITDA. Cohen does not take a salary; if he fails to meet the targets, he receives no benefits from the award.

      This incentive structure, likened by some observers to a Musk-style ambitious goal, illustrates both the boldness of the eBay initiative and the pressure on Cohen to quickly facilitate transformational growth. Acquiring eBay, with its established marketplace, 130 million active buyers, and payments system, would rapidly reposition GameStop as more than just a retailer of used video games.

      In recent years, eBay has been focused on streamlining by selling off its Classifieds business and the StubHub ticketing division to concentrate on its core marketplace. This focus has made it leaner and a more appealing acquisition target, with a relatively stable revenue stream and a brand established since the mid-1990s.

      For Cohen, the lure lies in the blend of consumer reach and digital capabilities, which would provide the combined entity with significant scale in the marketplace economy at a time when Amazon's dominance has created the impression of a settled, perhaps stagnant, sector. Whether eBay's management and board share this enthusiasm remains uncertain. At the time of writing, neither company had publicly commented on the report.

      What's evident is that if pursued, the transaction would be partly financed in cash and likely in GameStop equity, which is a volatile asset historically influenced more by retail investor sentiment than actual operational performance. Persuading eBay shareholders to accept GameStop stock as part of any compensation would require a distinct negotiation.

      The narrative of GameStop is far from concluded. In fact, it may be venturing into one of its most unusual chapters yet.