On May 3, eBay surged 15.31% in after-hours trading, reaching $120.0 per share, with trading volume of approximately $399,700. The sharp rally was primarily driven by reports that GameStop is preparing to submit an acquisition offer for eBay at $125 per share, representing approximately a 20% premium over eBay's prior Friday closing price, valuing the deal at roughly $56 billion.
According to sources, GameStop has been quietly accumulating eBay shares. If eBay's management resists the bid, GameStop CEO Ryan Cohen, who is also the company's largest shareholder, may bypass the board and launch a tender offer directly to eBay shareholders. The strategic rationale centers on significant business overlap, as eBay's core collectibles and secondhand goods trading aligns closely with GameStop's expansion into collectible toys, trading cards, and premium resale markets.
The move also comes amid strong fundamentals for eBay. The company recently reported Q1 revenue of $3.09 billion, up 19% year-over-year, with adjusted EPS of $1.66, both exceeding expectations. Q2 revenue guidance of $2.97–$3.03 billion also topped Wall Street estimates, supported by collectibles, auto parts trading, and live auction activity. Susquehanna raised its target price from $95 to $110 ahead of the acquisition news.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
