EBay soars on report that GameStop is preparing a takeover bid
EBay's stock rose over 13% after a report that GameStop is preparing a takeover bid for the online auction platform. GameStop, under Ryan Cohen's leadership, has been building a stake in eBay and aims to create a retail powerhouse by combining the two businesses. Both companies face challenges adapting to shifting consumer behaviors, particularly in digital commerce and collectibles markets.
- ▪GameStop is reportedly preparing a takeover bid for eBay, leading to a more than 13% after-hours stock surge for eBay.
- ▪Ryan Cohen, founder of Chewy and leader of GameStop, plans to merge the companies into a major retail competitor.
- ▪GameStop's market value is $11.8 billion compared to eBay's $46 billion, highlighting a significant size disparity between the two firms.
- ▪Both eBay and GameStop have been focusing on collectibles and used goods to appeal to overlapping customer bases.
- ▪Spokespeople for both companies did not immediately respond to requests for comment on the reported bid.
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EBay Inc. jumped more than 13% in after-hours trading on Friday after the Wall Street Journal reported that video-game retailer GameStop Corp. is preparing a bid for the company.Recommended Video GameStop, led by e-commerce entrepreneur Ryan Cohen, has been building a position in the online auctioneer and plans to make an offer for the business this month. Spokespeople for eBay and GameStop didn’t immediately respond to requests for comment. Shares in GameStop also rose. Cohen, the founder of pets supplies e-tailer Chewy, plans to turn the combined companies into a retail juggernaut, the newspaper reported. GameStop had a market value of $11.8 billion before the news broke, while eBay’s is much larger at around $46 billion.
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