GameStop preparing an offer to buy eBay in effort to boost market worth: report | Latest Tech News
GameStop is preparing an offer for eBay as CEO Ryan Cohen pursues plans to boost the struggling videogame retailer’s market worth more than tenfold, the Wall Street Journal reported on Friday.
Shares of eBay, which has a market capitalization of about $46 billion, jumped about 10% in prolonged trading. GameStop gained 7%. The company has a market worth of practically $12 billion.
GameStop has been quietly building a stake in eBay’s shares forward of a potential offer, the report said, citing people acquainted with the matter. It might submit an offer for eBay as soon as later this month.
GameStop is preparing to make an offer for eBay, the Wall Street Journal reported. GameStop has been quietly building a stake in eBay’s shares Stephen Yang for the New York Post
If eBay shouldn’t be receptive, Cohen might resolve to take the offer straight to the e-commerce company’s shareholders, the Journal said. Details of the potential offer couldn’t be realized, the report added.
The corporations and Cohen didn’t immediately reply to GWN requests for remark.
EBay shares jumped on the news. GameStop might submit an offer as soon as later this month. REUTERS
GameStop in January unveiled a compensation bundle value roughly $35 billion for Cohen, hinging on a turnaround that requires him to raise the struggling videogame retailer’s market capitalization to $100 billion and hit $10 billion in cumulative efficiency EBITDA (earnings before curiosity, taxes, depreciation and amortization).
GameStop’s shares have slumped from all-time highs hit in 2021, when it turned a retail investor darling during the pandemic-era meme-stock rally.
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