GameStop Stock Jumps 9% on eBay Bid Report, Reigniting Meme Stock Frenzy
GameStop (GME) shares jumped greater than 9% in after-hours buying and selling on May 2. A Wall Street Journal report stated the videogame retailer is getting ready a takeover bid for eBay (EBAY).
The report despatched Reddit’s retail buying and selling group again into overdrive, reviving a meme inventory playbook that had cooled since 2021’s report quick squeeze.
Stock Surge Echoes Meme Stock Era
GameStop closed up 6.33% at $26.53 on quantity close to 18.7 million shares on May 1, effectively above the latest common. After-hours prints lifted the inventory towards $27.61, extending the good points above 9%.
Separately, eBay shares climbed 10% to fifteen% in after-hours buying and selling on the takeover hypothesis. The response recalled the 2021 short squeeze that briefly turned GameStop right into a Wall Street obsession.
“GME and eBAY. Makes excellent sense,” remarked Michael Burry.
As of mid-April, quick curiosity sat at 61.91 million shares, or about 15% of float. That determine stays far under 2021 extremes however retains the inventory primed for sharp strikes on any catalyst.
Still, Reddit boards together with r/Superstonk and r/wallstreetbets pushed renewed enthusiasm. Posters framed the bid as a return of meme stock energy beneath CEO Ryan Cohen.
Cohen Eyes a $100 Billion Pivot
The Wall Street Journal report, citing folks aware of the matter, said GameStop has quietly constructed an eBay stake. A proper bid may come as quickly as later this month, the report added.
“I like that Ryan Cohen selected to drop this information *after* GameStop has been shopping for up shares/choices of eBay – it creates a win/win state of affairs vs. the events that need to sabotage GameStop,” one consumer 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 deal that pays Cohen as much as $35 billion in fairness.
The package deal vests if GameStop hits a $100 billion market cap and $10 billion in cumulative EBITDA.
GameStop carries a market worth close to $12 billion towards eBay’s roughly $46 billion. Financing phrases stay unknown, and neither firm has commented.
“GameStop is getting ready to accumulate eBay, an organization price 4 occasions its personal measurement…Cohen did precisely this earlier than, he constructed Chewy from a small on-line pet meals firm right into a $40 billion enterprise earlier than promoting it…An organization that was on the verge of chapter 5 years in the past is now trying to purchase one of many largest e-commerce platforms on earth,” analysts on the Bull Theory highlighted.
The retailer’s $9 billion money pile and pivot toward bitcoin treasury holdings give Cohen optionality. However, heavy debt or inventory issuance seems to be possible.
Investors ought to look ahead to a 13D stake disclosure or a proper supply within the coming weeks.
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