GameStop Prepares eBay Acquisition Offer

GameStop Corp. is preparing a potential acquisition offer for eBay Inc., as Chief Executive Ryan Cohen seeks to more than quadruple the video game retailer's market value, according to people familiar with the matter.

The move comes amid Cohen's aggressive efforts to revive GameStop, which has a market capitalization of nearly $12 billion. eBay, with a market value of about $46 billion, saw its shares rise roughly 10 percent in extended trading Friday following the news. GameStop shares climbed 7 percent.

People familiar with the discussions said GameStop has quietly accumulated a stake in eBay's shares in anticipation of the bid. The company could submit a formal offer as soon as later this month. Should eBay's management prove unreceptive, Cohen may take the proposal directly to the online marketplace's shareholders. Specific terms of any potential deal remain undisclosed.

Neither GameStop, eBay nor Cohen responded immediately to requests for comment.

The prospective deal aligns with Cohen's expansive turnaround strategy for GameStop, a brick-and-mortar retailer struggling in the shift to digital gaming. In January, the company's board approved a compensation package for Cohen...