GameStop is getting ready to make an offer on eBay as Cohen aims for a $100 billion valuation.

      The video game retailer that meme traders rescued from potential failure is now looking to acquire one of the oldest marketplaces on the internet. GameStop Corp is preparing a bid for eBay Inc, according to a Wall Street Journal report released on May 1, 2026, which led to a more than 13% surge in eBay shares during after-hours trading.

      This move represents the most significant step in CEO Ryan Cohen’s effort to transform a struggling physical retail chain into a diversified e-commerce giant and will test Wall Street's willingness to finance one of the most unexpected corporate shifts in recent history.

      eBay's market capitalization is approximately $46 billion, while GameStop's stock value was around $12 billion before the news broke. The figures clearly indicate that Cohen is not proposing a friendly merger of equals; rather, he aims to acquire a company nearly four times the size of GameStop.

      GameStop has been quietly accumulating eBay shares in preparation for a formal offer, as reported by the Journal. Although no specifics about the deal structure or terms have been confirmed, sources informed the paper that an offer could be made as soon as later in May. Should eBay’s board be unresponsive, Cohen is ready to present the bid directly to its shareholders.

      The financing for such an acquisition would largely derive from GameStop’s own resources. The company concluded the first quarter of 2026 with around $9 billion in cash and investments, a rise from $4.8 billion the previous year, thanks to equity offerings and a strategic exit from unprofitable retail ventures.

      While this amount alone wouldn’t be sufficient for eBay’s valuation, it demonstrates Cohen's ability to fund a significant part of a deal without heavily diluting shareholders.

      Cohen, the Canadian entrepreneur who established the pet supplies e-commerce platform Chewy before selling it in 2017 and subsequently becoming GameStop’s chairman and CEO, has openly stated his ambitions. In January 2026, GameStop's board approved a performance-based stock option award estimated by analysts at around $35 billion if fully earned, structured in nine tranches linked to rising market capitalization and earnings milestones.

      The most challenging target requires GameStop to achieve a $100 billion market value and attain $10 billion in cumulative EBITDA. Cohen does not draw a salary; if he does not succeed, he forfeits the award. This structure, likened by some observers to a Musk-style moonshot incentive, illustrates both the boldness of the eBay initiative and the intense pressure Cohen faces to achieve rapid transformative growth. Acquiring eBay, with its established marketplace, 130 million active buyers, and payment systems, would instantly redefine GameStop beyond merely being a retailer of used video games.

      In recent years, eBay has been streamlining by divesting its Classifieds and StubHub ticketing divisions to concentrate on its core marketplace. This newfound focus has made eBay not only leaner but also a more attractive acquisition target, boasting a reliable revenue stream and brand recognition dating back to the mid-1990s.

      For Cohen, the appeal appears to lie in the combination of consumer reach and digital infrastructure, assets that would provide a merged company with significant scale in the marketplace sector at a time when Amazon’s dominance has made the market feel saturated. It remains to be seen if eBay’s management and board share this enthusiasm. As of this writing, neither company had publicly commented on the report.

      However, what is clear is that, if pursued, the transaction would be financed partially in cash and likely partially in GameStop stock, which is a volatile instrument that has historically fluctuated more due to retail investor sentiment than operational fundamentals. Convincing eBay shareholders to accept GameStop stock as part of any deal would be a completely separate negotiation.

      The GameStop saga is far from over. In fact, it may be entering its most unusual chapter yet.