May 1 - GameStop is preparing an offer for eBay, according to people familiar with the matter. The prospective move follows reports that GameStop has quietly been acquiring shares of eBay as it positions for a possible bid.
In extended trading on Friday, eBay shares climbed about 9% after the news, while GameStop shares increased roughly 3%. eBay's market capitalization stands at about $46 billion, and GameStop's market value is nearly $12 billion.
Those familiar with the situation say GameStop has been building a stake in eBay's stock ahead of making an approach. The company could present a formal offer as soon as later this month, according to the same sources. GameStop and eBay did not immediately respond to requests for comment.
The developments sent both stocks higher in after-hours activity, reflecting investor attention to the possibility of a bid and any strategic rationale that might accompany a transaction.
Separately, an investment service referenced in the original notice highlighted a question for individual investors: Should you invest $2,000 in EBAY right now? That service says it evaluates EBAY alongside thousands of other companies using more than 100 financial metrics and employs artificial intelligence to surface potential stock ideas. It notes past picks that have produced sizable gains, including Super Micro Computer (+185%) and AppLovin (+157%). The service offers to identify whether EBAY appears in any of its current strategies or if alternatives exist within the same sector.
Key details from the reporting are limited to the market moves, stated market capitalizations and the possibility of an offer later this month. There is no additional confirmed information about the terms of any potential proposal or any engagement between the two companies beyond the reported accumulation of eBay shares by GameStop.
Summary of facts:
- GameStop is preparing to make an offer for eBay.
- GameStop has been building a stake in eBay shares ahead of a potential offer.
- An offer could be submitted as soon as later this month.
- eBay's market capitalization is about $46 billion; GameStop's is nearly $12 billion.
- In extended trading, eBay was up about 9% and GameStop about 3%.
- Neither company provided immediate comment when contacted.