GameStop is planning to make a takeover offer to eBay

According to people familiar with the matter, GameStop CEORyan Cohen is planning to make a takeover offer to eBay, an e-commerce platform with a market value of about US$45 billion, with the aim of building it into a retail giant with a market value of more than 100 billion US dollars. Currently, GameStop's own market value is only about US$11 billion. According to Bitget market data, eBay's share price soared by more than 10% after hours in U.S. stocks after the news broke out, and GameStop rose by about 5%. People familiar with the matter also revealed that GameStop has quietly increased its stake in eBay and may submit an offer as early as later this month. If eBay's board of directors rejects it, Cohen may directly launch an offer to eBay shareholders. Cohen made it clear at the beginning of this year that he was looking for major M & A targets in the consumer and retail sectors, trying to expand the company's business beyond video games and collectibles. He had just adjusted his salary plan and if he pushed the company's market value to US$100 billion and other conditions, he was expected to receive a stock return of up to US$35 billion. As of the end of March, GameStop had approximately US$9 billion in cash on hand, a significant increase from US$4.8 billion in the same period last year, providing ammunition support for this "snake-swallow-elephant" acquisition. eBay's share price has risen by more than 50% in the past 12 months. In February this year, it just acquired second-hand fashion platform Depop for US$1.2 billion. Its core strategy of focusing on collectibles and fashion has achieved initial results. Michael Burry, a GameStop investor and prototype of the movie "Big Short", has also publicly called on the company to use its cash reserves to make transformative acquisitions. Since joining the board and rising to chairman in 2021, Cohen has built a large following with his promise to turn the company around, and is expected to once again use his large online fan base to build momentum for the deal.