GameStop (GME) shares jumped more than 9% in after-hours trading on May 2. A Wall Street Journal report said the video game retailer is preparing a takeover bid for eBay (EBAY).
The report sent Reddit’s retail trading community back into overdrive, reviving the playbook for meme stocks that had slowed since the record short squeeze of 2021.
Rising Stocks Echoes the Era of Stocks meme
GameStop closed up 6.33% at $26.53 on trading volume of nearly 18.7 million shares on May 1, well above the recent average. After-hours prints lifted the stock toward $27.61, extending gains above 9%.
Separately, eBay shares He went up 10% to 15% in after-hours trading based on takeover speculation. The reaction indicated 2021 short squeeze That briefly turned GameStop into a Wall Street frenzy.
“GME and eBay. This makes perfect sense,” Notice Michael Burry.
As of mid-April, short interest He sat down 61.91 million shares, representing 15% of the traded shares. This number remains well below the 2021 highs but keeps the stock ready for sharp moves on any catalyst.
However, Reddit boards include r/Superstonk and r/wallstreetbets I paid Renewed enthusiasm. Posters put the show on it Meme stock energy return Under the leadership of CEO Ryan Cohen.
Cohen eyes $100 billion pivot
The Wall Street Journal reported, citing people familiar with the matter, He said GameStop has quietly built a stake in eBay. The report added that the official offer could come later this month.
“I like that Ryan Cohen chose to drop this news *after* GameStop bought eBay stock/options – it creates a win/win scenario for parties that want to sabotage GameStop,” one user Notice.
If eBay’s board of directors is not receptive, Cohen plans to make the offer directly to eBay shareholders. The plan is tied to a January 2026 compensation package that would pay Cohen up to $35 billion in stock.
The package is awarded if GameStop reaches a market cap of $100 billion and $10 billion in cumulative EBITDA.
GameStop carries a market cap of nearly $12 billion versus eBay’s roughly $46 billion. The financing terms are still unknown, and neither company has commented.
“GameStop is poised to acquire eBay, a company worth 4 times its size… Cohen has done exactly this before, building Chewy from a small online pet food company into a $40 billion company before selling it… A company that was on the verge of bankruptcy five years ago is now trying to buy one of the largest e-commerce platforms on Earth,” analysts at Bull Theory said. Highlight.
The retailer’s $9 billion cash pile and Pivot to Bitcoin treasury holdings Give Cohen a choice. However, heavy debt or equity issuance seems likely.
Investors should watch for the unveiling of the 3D stake or a formal offering in the coming weeks.
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