GameStop Shares Soar 9% After-Hours on Planned eBay Takeover Bid
GameStop shares jumped 9% after-hours after reports of a planned eBay takeover bid and rose 6.33% to close at $26.53 on 18.7 million shares. CEO Ryan Cohen has built an eBay stake ahead of a formal offer later this month, part of his push toward $100 billion cap and $10 billion EBITDA.
1. Share Price Reaction
GameStop shares surged over 9% in after-hours trading after news of a potential eBay takeover bid, following a 6.33% gain to $26.53 on volume of 18.7 million shares during the regular session. The spike extends recent volatility driven by renewed retail trading interest.
2. eBay Takeover Plan
The company has quietly amassed a stake in eBay as it prepares a takeover proposal that could be lodged with the eBay board or directly with shareholders later this month. This move revives a strategic pivot under CEO Ryan Cohen toward acquiring a peer in the consumer or retail sector.
3. Valuation and Incentive Structure
Cohen’s January compensation package vests only if GameStop reaches a $100 billion market capitalization and achieves $10 billion in cumulative EBITDA, a mandate that underpins the push for a major acquisition. GameStop currently holds nearly $9 billion in cash and investments to support such deals.
4. Short Interest and Financing Outlook
As of mid-April, GameStop’s short interest stood at 61.91 million shares, roughly 15% of the float, leaving the stock primed for sharp moves on any catalyst. Investors are watching for a Schedule 13D filing or formal offer announcement and assessing potential debt or equity issuance to fund the transaction.