SAN JOSE, California, May 2, 2026, 06:03 PDT
eBay Inc. shares surged late Friday, fueled by a Wall Street Journal report that GameStop Corp. is gearing up to make a bid for the online marketplace—a bold move from Ryan Cohen’s company, which is dwarfed in size by eBay. With U.S. markets already closed for the weekend, after-hours trading showed eBay spiking over 13%. GameStop picked up gains as well, according to Fortune, which cited both Bloomberg and the Journal.
Why now: eBay heads into the report from a position of strength. The company recently projected second-quarter revenue ahead of analysts’ expectations, citing support from collectibles, auto parts and live auctions. “Consumers can still find value on eBay when income is pressured,” CEO Jamie Iannone said to Reuters. Investing.com
GameStop’s ability to leverage its cash reserves and its active retail base faces a real test with the reported bid. According to Reuters, citing the Journal, GameStop has amassed an eBay stake behind the scenes, and Cohen might bypass eBay’s board, bringing an offer straight to shareholders if needed. The report also highlights the stark difference in company size, suggesting any deal could end up depending on debt, stock, or both.
eBay investors got a fresh set of figures to chew over. The San Jose company posted first-quarter revenue of $3.1 billion, a 19% climb, with gross merchandise volume — the tally of paid transactions moving through its marketplace — reaching $22.2 billion, up 18%. CEO Jamie Iannone described it as a “strong start,” while CFO Peggy Alford highlighted “robust GMV and revenue growth.” eBay Investors
Wall Street showed some restraint. TD Cowen’s John Blackledge bumped his eBay target up to $88 from $87, maintaining a Hold. He called the first-quarter numbers “solid,” but flagged the operating-margin outlook as slightly soft, with management choosing to put more into growth efforts. TipRanks
Resale competition is the story here. Back in February, eBay struck a deal to acquire Depop from Etsy for roughly $1.2 billion in cash, targeting a younger, fashion-focused crowd in the peer-to-peer space. According to a filing, the transaction is slated to wrap up by the end of the third quarter. U.S. and German regulators have already given the green light, but authorities in the UK and Australia are still reviewing.
GameStop’s approach looks different: it’s squeezing more from a shrinking retail footprint. Fourth-quarter net sales landed at $1.104 billion, falling from $1.283 billion a year earlier. Still, the company closed the quarter with $9.0 billion in cash, cash equivalents, and marketable securities. That pile gives Cohen room to maneuver, but doesn’t solve the scale issue.
But there’s no formal offer yet—no details on price, no word on financing. If a bid leans heavily on stock, eBay shareholders could be left carrying the execution risk. A deal packed with debt? Lenders might hesitate. eBay’s board might also push back, pointing to its stand-alone strategy: Depop, the collectibles push, and the argument that those pieces together could be worth more than folding into the Cohen-led retail roll-up.
eBay shareholders are now waiting to see if a formal bid materializes before the month ends. GameStop investors face a tougher dilemma: will acquiring a larger marketplace actually solve the ongoing slide in its core retail operations, or just saddle the company with a bigger, potentially messier business?
