eBay shares jumped more than 13% in after-hours trading on Friday after the reported that GameStop Corp. is preparing a bid for the company. GameStop, which has been building a position in eBay, plans to make an offer for the business this month.
The move would put Ryan Cohen, the e-commerce entrepreneur who founded the pet supplies e-tailer Chewy, at the center of a deal that would link two struggling retailers with overlapping customers. Before the news broke, GameStop had a market value of $11.8 billion and eBay was worth about $46 billion, a gap that underscores how ambitious the proposed ebay acquisition would be.
GameStop has been shutting stores and leaning harder into collectible toys and trading cards as more video games are bought online. eBay has been pushing collectibles and used goods on its marketplace, where limited releases and hard-to-find items often sell at a markup. The overlap helps explain why Cohen has described the goal as turning the combined companies into a retail juggernaut.
Still, the deal would bring together two companies that have each struggled to adapt to changing consumer preferences. GameStop has been trying to remake itself as a broader retail platform, while eBay has spent years trying to expand beyond its old image as a flea market for secondhand goods. If GameStop follows through this month, the question is not whether the pitch is bold. It is whether the numbers can support it.