GameStop is preparing to make an offer for eBay, according to people familiar with the matter, part of CEO Ryan Cohen's audacious plan to turn the retailer into a $100-billion plus juggernaut.

GameStop, which had a market value of around $11 billion as of Friday's close, has been quietly building a stake in eBay's shares ahead of a potential offer, the people said. EBay is several times GameStop's size, with a market value around $45 billion as of Friday's close.

eBay's shares jumped 12% after-hours Friday after The Wall Street Journal reported on GameStop's plans, while GameStop's rose around 4%.

GameStop could submit an offer for eBay as soon as later this month, the people said, assuming the retailer proceeds as planned.

If eBay isn't receptive, Cohen could decide to take the offer directly to eBay's shareholders, one of the people added. Details of the potential offer for eBay couldn't be learned.

Cohen has made clear he's eyeing a major transaction. He told The Wall Street Journal in late January he was scoping out potential deal targets, especially in the consumer and retail sector, as part of a plan to scale the business far beyond videogames and collectibles.

GameStop adjusted Cohen's compensation package at the beginning of the year to give him extra incentive to boost the company's market value and profitability. He stands to make as much as $35 billion in stock if certain criteria are met, including if the market value hits $100 billion, the Journal previously reported.

He has been cheered on by GameStop investors including Michael Burry of "The Big Short," whose bets against subprime mortgage bonds were chronicled in the Michael Lewis book. Burry has written in his Substack newsletter that GameStop should use its cash pile to make transformative acquisitions.

GameStop's shares have risen around 30% so far this year, in part on momentum surrounding Cohen's dealmaking plans.

EBay's shares are up more than 50% over the past 12 months as its strategy to focus on core categories including collectibles and fashion pays off. In February, eBay announced a deal to acquire secondhand fashion marketplace Depop from Etsy for $1.2 billion.

GameStop had around $9 billion in cash on hand at the end of March, up from $4.8 billion a year earlier. Cohen would likely enlist his legions of online followers to rally behind a deal, too.

Cohen, the co-founder of online pet-products retailer Chewy, gained a cult following after he built a big GameStop stake and in late 2020 criticized the company for moving too slowly toward e-commerce. He joined GameStop's board in January 2021, when the business had a market value of a little over $1 billion. He rose to become chairman later that year and vowed to turn the struggling retailer around.