finance
GameStop Acquires Stake in eBay
GameStop is preparing an offer for eBay as CEO Ryan Cohen seeks to increase the videogame retailer's market value more than tenfold. eBay shares rose about 10% in extended trading following the report. GameStop has been building a stake in eBay ahead of a potential bid that could come later this month.
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GameStop is preparing an offer for eBay as CEO Ryan Cohen pursues plans to boost the videogame retailer's market value more than tenfold, the Wall Street Journal reported on Friday. The report cited people familiar with the matter, who said GameStop has been quietly building a stake in eBay’s shares ahead of a potential offer. GameStop could submit an offer for eBay as soon as later this month.
If eBay is not receptive, Cohen could decide to take the offer directly to eBay’s shareholders, according to the Wall Street Journal. eBay has a market capitalization of about $46 billion, while GameStop has a market value of nearly $12 billion. Shares of eBay jumped about 10% in extended trading.
GameStop’s shares have slumped from all-time highs hit in 2021. GameStop in January unveiled a compensation package worth roughly $35 billion for Cohen. The compensation package for CEO Ryan Cohen hinges on lifting GameStop’s market capitalization to $100 billion and hitting $10 billion in cumulative performance EBITDA.
The companies and CEO Ryan Cohen did not immediately respond to Reuters requests for comment.
