GameStop (GME) shares jumped more than 9% in after-hours trading on May 2. A Wall Street Journal report said the videogame retailer is preparing a takeover bid for eBay (EBAY).
The report sent Reddit’s retail trading community back into overdrive, reviving a meme stock playbook that had cooled since 2021’s record short squeeze.
Stock Surge Echoes Meme Stock Era
GameStop closed up 6.33% at $26.53 on volume near 18.7 million shares on May 1, well above the recent average. After-hours prints lifted the stock toward $27.61, extending the gains above 9%.
Separately, eBay shares climbed 10% to 15% in after-hours trading on the takeover speculation. The reaction recalled the 2021 short squeeze that briefly turned GameStop into a Wall Street obsession.
“GME and eBAY. Makes perfect sense,” remarked Michael Burry.
As of mid-April, short interest sat at 61.91 million shares, or about 15% of float. That figure stays far below 2021 extremes but keeps the stock primed for sharp moves on any catalyst.
Still, Reddit boards including r/Superstonk and r/wallstreetbets pushed renewed enthusiasm. Posters framed the bid as a return of meme stock energy under CEO Ryan Cohen.
Cohen Eyes a $100 Billion Pivot
The Wall Street Journal report, citing people familiar with the matter, said GameStop has quietly built an eBay stake. A formal bid could come as soon as later this month, the report added.
“I like that Ryan Cohen chose to drop this news *after* GameStop has been buying up shares/options of eBay – it creates a win/win scenario vs. the parties that want to sabotage GameStop,” one user remarked.
If eBay’s board is unreceptive, Cohen plans to take the offer directly to eBay shareholders. The plan ties to a January 2026 compensation package that pays Cohen up to $35 billion in equity.
The package vests if GameStop hits a $100 billion market cap and $10 billion in cumulative EBITDA.
GameStop carries a market value near $12 billion against eBay’s roughly $46 billion. Financing terms remain unknown, and neither company has commented.
“GameStop is preparing to acquire eBay, a company worth 4 times its own size…Cohen did exactly this before, he built Chewy from a small online pet food company into a $40 billion business before selling it…A company that was on the verge of bankruptcy five years ago is now attempting to buy one of the largest e-commerce platforms on earth,” analysts at the Bull Theory highlighted.
The retailer’s $9 billion cash pile and pivot toward bitcoin treasury holdings give Cohen optionality. However, heavy debt or stock issuance looks likely.
Investors should watch for a 13D stake disclosure or a formal offer in the coming weeks.
