GameStop Corp. (GameStop (GME)) is reportedly preparing a takeover offer for California-based e-commerce company eBay Inc. (eBay (EBAY)) as soon as this month, as CEO Ryan Cohen pursues a mandate to lift the video game retailer's market value more than tenfold to $100 billion.

GameStop has been quietly building a stake in eBay ahead of a potential offer, The Wall Street Journal reported on Friday, citing sources.

GME shares rose 3.96% while EBAY surged 11.82% in after-hours trading following the report.

Cohen Eyes eBay Directly

Details of the potential offer could not be learned. If eBay is not receptive, Cohen could take the offer directly to shareholders, the Journal reported.

According to an SEC filing, eBay had 448 million shares of common stock issued and outstanding as of Feb. 13.

Cohen had signaled the move in January, saying he was considering a significant acquisition of a publicly traded company in the consumer or retail sector, calling it either "genius or totally, totally foolish."

GameStop and eBay did not immediately respond to requests for comment.

Cohen's $35B Pay Package Hinges On $100B Turnaround

Cohen joined GameStop's board in January 2021 and became CEO in September 2023, steering the company to profitability through aggressive cost-cutting. In January, GameStop unveiled a roughly $35 billion compensation package for Cohen, contingent on hitting $10 billion in cumulative EBITDA.

In March, GameStop reported fourth-quarter results in which the omnichannel retailer of video games, consumer electronics, and gaming merchandise posted revenue of $1.10 billion, missing analyst estimates of $1.47 billion by 24.73%, while earnings per share of $0.49 beat the consensus estimate of $0.31 by 58.06%.

Inside GameStop's Reinvention

GameStop ended fiscal 2025 with nearly $9 billion in total cash and investments, including a $519 million Bitcoin (BTC) position. Net interest income of $271.5 million exceeded operating income of $232.1 million.

On the retail side, GameStop is rolling out dedicated retro gaming sections across all U.S. stores by early May, targeting a global retro console market projected to reach $8 billion by 2033, with margins the company said are in line with its pre-owned business.

Price Action: On Friday's close, GME was trading at $26.53, up 6.33%, while EBAY closed at $104.07, up 0.57%.