GameStop is setting up an eBay proposal as Cohen aims for a $100 billion valuation.

      The video game retailer that meme traders rescued from potential collapse is now looking at one of the internet's oldest marketplaces. GameStop Corp is reportedly preparing a bid to acquire eBay Inc, according to a Wall Street Journal article released on 1 May 2026, causing eBay's stock to jump over 13% in after-hours trading.

      This action would mark the most significant move yet in CEO Ryan Cohen's initiative to transform a struggling traditional retail chain into a diverse e-commerce giant, and it will reveal whether Wall Street is willing to fund one of the most unlikely corporate transformations in recent history.

      eBay's market capitalization is approximately $46 billion, while GameStop's stock was valued around $12 billion prior to the news. The numbers alone indicate that Cohen is not suggesting a friendly merger; he is targeting a company that is almost four times larger than GameStop.

      GameStop has been quietly increasing its stake in eBay shares in preparation for a formal proposal, as reported by the Journal. Though details regarding the structure of the proposed deal have not been confirmed, sources indicated that an offer might be made as soon as late May. If eBay's board does not respond favorably, Cohen is ready to take the proposal directly to the shareholders.

      The financial resources for such a deal would primarily come from GameStop's financial reserves. The company concluded the first quarter of 2026 with roughly $9 billion in cash and investments, an increase from $4.8 billion a year prior, a funding base built through equity offerings and a strategic reduction in unprofitable retail operations.

      While this amount alone won’t cover eBay's valuation, it illustrates Cohen's ability to finance a significant portion of a deal without drastically diluting shareholder equity.

      Cohen, the Canadian entrepreneur who founded pet supplies e-tailer Chewy before selling it in 2017 and later becoming GameStop's chairman and CEO, has made his aspirations clear. In January 2026, GameStop's board authorized a performance-based stock option grant estimated by analysts to be worth about $35 billion if fully claimed, structured in nine parts linked to increasing market capitalization and earnings goals.

      The toughest benchmark: GameStop needs to achieve a market value of $100 billion and generate $10 billion in cumulative EBITDA. Cohen does not receive a salary. If he does not succeed, he earns nothing from this incentive.

      This setup, which some analysts have likened to a Musk-style ambitious incentive, sheds light on both the boldness of the eBay initiative and the urgency Cohen feels to bring about significant growth swiftly. Acquiring eBay, with its well-established marketplace, 130 million active buyers, and payment systems, would quickly reposition GameStop beyond just a seller of used video games.

      In recent years, eBay has streamlined its operations, selling off its Classifieds business and StubHub ticketing division to focus on its primary marketplace. This strategic focus has made the company leaner and positioned it as a more straightforward acquisition target, boasting a predictable revenue stream and strong brand recognition dating back to the mid-1990s.

      For Cohen, the appeal lies in the combination of consumer reach and digital infrastructure, assets that could provide a merged entity genuine scale in the marketplace economy at a time when Amazon's dominance has created a sense of stability, if not stagnation, in the sector. Whether eBay's management and board share this enthusiasm remains uncertain. At the time of writing, neither company had publicly responded to the report.

      What is evident is that if this transaction goes ahead, it would be funded partly in cash and almost certainly in GameStop equity, a fluctuating asset whose value has historically been influenced more by retail investor sentiment than by operational performance. Convincing eBay shareholders to accept GameStop stock as part of any deal would require a separate negotiation altogether.

      The narrative of GameStop is far from over. It may very well be entering its most peculiar chapter yet.