GameStop Eyes Major Acquisition
GameStop has expressed ambition, claiming it may have a shot at becoming the next Amazon. The retailer is gearing up for a significant move in the e-commerce space.
The journey started in early February when GameStop announced plans to bolster its inventory as a precursor to possibly acquiring eBay.
In a recent press release, GameStop outlined its strategy, revealing it has secured a 5% economic stake in eBay over the last three months. The company is now poised to launch a bid that could rival Amazon in the online marketplace.
GameStop’s proposal suggests purchasing eBay entirely for $125 per share, structuring the deal as a 50-50 split between cash and GameStop stock, resulting in an estimated acquisition cost of $55.5 billion.
CEO Ryan Cohen emphasized that with his leadership, eBay could transform into a formidable competitor to Amazon.
Cohen also highlighted plans for the newly merged entity to cut at least $2 billion in expenses within just a year. The savings would come from slashing sales and marketing budgets by half, trimming $300 million from product development, and reducing administrative costs by $500 million.
“In my experience, I can’t think of anyone better to run the eBay business,” Cohen stated. He further remarked that eBay ought to hold far greater value and he envisions transforming it into a behemoth worth hundreds of billions.
GameStop has experienced a significant reversal under Cohen’s leadership, going from a net loss of $381 million in fiscal 2021 to a net income of $418 million by fiscal 2025.
This transformation gained traction following the meme stock phenomenon in 2021 when retail investors rallied behind GameStop for nostalgic reasons. It’s interesting, really, how GameStop has managed to keep its momentum alive throughout these years.
The stock, which reached historical lows in 2020, was often valued at less than $1 per share. However, by December 2020, it surged to over $4, and its value rocketed further the following month.
By January 1, 2021, the stock peaked at $81.25 but has since declined. Nevertheless, it remains around $25 a share — double its price from 2013 and significantly higher than in 2007 when the sale of physical video games was lucrative.
GameStop’s investor base is still largely comprised of individual shareholders, controlling approximately 90% of its shares. Meanwhile, eBay’s stock has more than doubled since 2024, suggesting that if Cohen’s vision materializes, both firms could see tremendous profits.
As long as trends in media and technology resale continue to grow, and the trading card boom persists in the collector community, both entities appear to be on a path of potential success.
