GameStop wants to buy eBay, prepared to make offer

GameStop is prepared to offer buyout terms to auction titan eBay, the premier commerce point for the second-hand used gaming market.

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New reports from The Wall Street Journal say that retailer GameStop seeks to acquire eBay to help advance ambitious expansion plans. GameStop was the de facto depot of generations of interactive entertainment and now company CEO Ryan Cohen seeks to make the company into a $100 billion brand that goes beyond games and collectibles.

eBay currently has a market capitalization of $45-46 billion, and it's said that GameStop's CEO is prepared to make a hostile takeover bid if the initial offer is refused. GameStop has been securing stock in eBay for months now, and while its cash is ample at $9 billion, the group would still need additional partners to make the buyout happen.

eBay is top choice to buy and sell used games, action figures, and collectibles, and its listings help inform entire sectors of industry. It's unclear what changes could be made to eBay's operations as a result of the buyout, and neither company has publicly remarked on the reports.

While physical media remained an important part of gaming, the second-hand trade market has been a thorn in the side of publishers for decades, and new ownership--especially the kind that's already close to big entertainment companies--could help roll out new rules that shape digital second-hand commerce.

GameStop stock was up +6% in after hours trading to $28.20, whereas eBay saw a substantial +13.6% increase to $118 per share.