According to media reports, video game retailer GameStop (GME) is planning to acquire iconic e-commerce company eBay (EBAY) for $56 billion U.S.
The Wall Street Journal is reporting that GameStop has made an offer to buy eBay as it looks to rival e-commerce giant Amazon (AMZN).
Reports of an acquisition come after GameStop built a stake in eBay. GameStop currently has a market value of $12 billion U.S., while eBay’s is $46 billion U.S.
GameStop CEO Ryan Cohen said earlier this year that he is looking for potential deals to help scale the company beyond videogames and collectibles.
At the end March, GameStop had $9 billion U.S. in cash on hand, up from $4.8 billion U.S. a year earlier.
GME stock rose 6% on initial reports of the eBay acquisition report. Its share price has gained 29% this year to trade at $26.53 U.S. per share.
EBAY stock is up 36% this year and trading at $116.35 U.S. per share.
