What happened: GameStop stock fell roughly 3% pre-market Monday.
What’s behind the move: GameStop proposed to buy online marketplace eBay (EBAY) for about $56 billion in cash and stock.
The video game retailer, which is roughly four times smaller than eBay, offered $125 per share in cash and stock for the iconic maketplace site, or about a 20% premium to Friday’s close. Shares of eBay jumped 8% on Monday morning.
What else you need to know:
GameStop has already built a roughly 5% stake in eBay.
The company has made a series of moves to reinvent itself over the years since activist investor Ryan Cohen took helm of the struggling video game retail business.
Cohen was appointed CEO in September 2023 after serving as executive chairman since 2021.
GameStop has pivoted toward e-commerce and crypto in recent years, launching an NFT wallet and taking a stake in bitcoin (BTC-USD).
The stock has seen renewed periods of meme-frenzy since it became the poster child of retail investors more than 5 years ago.
Year-to-date the stock is up 32%, but its performance over the past five years has lagged more than 30%.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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