GameStop is reportedly preparing to make a takeover offer for eBay, according to sources familiar with the matter. The move is part of an ambitious strategy by CEO Ryan Cohen to transform the retailer into an industry giant with a market capitalization exceeding $100 billion.

Sources indicate that GameStop, which had a market value of approximately $11 billion as of last Friday's close, has quietly accumulated shares of eBay ahead of a potential offer. eBay is significantly larger than GameStop, with a market capitalization of around $45 billion as of the same date.

Following a report by The Wall Street Journal on the acquisition plan, eBay's stock surged more than 10% in after-hours trading on Friday, while GameStop's shares rose about 5%.

If the process proceeds as planned, GameStop could submit a formal offer as early as later this month, the sources said. Should eBay's management respond unfavorably, Cohen may bypass them and appeal directly to eBay’s shareholders. Specific terms of the potential offer remain unknown.

Cohen has previously expressed his intention to pursue major acquisition opportunities. In a late-January interview, he revealed that the company was evaluating potential targets, particularly in the consumer and retail sectors, with plans to expand beyond video games and collectibles.

Earlier this year, GameStop revised Cohen’s compensation package to include additional incentives tied to increasing the company’s market value and profitability. If certain targets—including reaching a $100 billion market cap—are met, Cohen could receive stock awards worth up to $35 billion.

Prominent GameStop investors, including Michael Burry of "The Big Short" fame, have voiced strong support for Cohen’s vision. In a post on his Substack newsletter, Burry suggested that GameStop should use its substantial cash reserves to pursue transformative acquisitions.

GameStop’s stock has climbed roughly 30% year-to-date, partly driven by market anticipation of Cohen’s acquisition strategy.

eBay’s shares have risen more than 50% over the past 12 months, supported by the early success of its refocused strategy on core categories such as collectibles and fashion. In February, the company announced the $1.2 billion acquisition of Depop, a secondhand fashion marketplace, from Etsy.

As of the end of March, GameStop held approximately $9 billion in cash, a significant increase from $4.8 billion a year earlier. Cohen may also leverage his large online following to rally support for the proposed transaction.

Cohen co-founded the online pet retailer Chewy. In late 2020, he built a substantial stake in GameStop and publicly criticized the company for its slow transition to e-commerce, attracting a loyal following. He joined GameStop’s board in January 2021, when the company’s market value was just over $1 billion. Later that year, he became board chairman, pledging to turn around the struggling retailer.