GameStop Pulls Off "Big whale swallows small fish" Move, Plans to Make Takeover Bid for eBay

BlockBeats News, May 2nd. According to sources familiar with the matter, GameStop CEO Ryan Cohen is reportedly planning to make a takeover offer to the e-commerce platform eBay, which has a market value of around $450 billion, aiming to transform it into a retail giant with a market value of over $1 trillion. Currently, GameStop's market value is only about $11 billion. According to Bitget market data, after the news broke, eBay's stock price surged over 10% in after-hours trading, while GameStop rose approximately 5% simultaneously. Insiders also revealed that GameStop has quietly increased its stake in eBay and may submit the offer as early as later this month. If rejected by eBay's board, Cohen may directly make a tender offer to eBay shareholders. Earlier this year, Cohen explicitly stated that he was looking for major acquisition targets in the consumer and retail sector, trying to expand the company's business beyond video games and collectibles. He recently adjusted his compensation plan, with the potential to receive up to $35 billion in stock rewards if he drives the company's market value to $1 trillion.

As of the end of March, GameStop held approximately $9 billion in cash, a significant increase from $4.8 billion in the same period last year, providing ammunition for this "David and Goliath" acquisition. eBay's stock price has risen by over 50% in the past 12 months. In February, they acquired the second-hand fashion platform Depop for $1.2 billion, showing initial success in their core strategy focusing on collectibles and fashion. GameStop investor and the real-life inspiration behind the movie "The Big Short," Michael Burry, has also publicly urged the company to use its cash reserves for transformative acquisitions. Since joining the board in 2021 and being appointed chairman, Cohen has gained a large following due to his commitment to turning the company around. It is expected that he will once again leverage the massive online fan base to drum up support for this deal.