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GameStop (GME.N) is preparing to make an offer for eBAY (EBAY.O), the Wall Street Journal reported on Friday, citing people familiar with the matter.
Shares of eBay, which has a market capitalization of about $46 billion, were up about 9% in extended trading on Friday.
Shares of GameStop, which has a market capitalization of nearly $12 billion, were up about 3%.
GameStop has been quietly building a stake in eBay's shares ahead of a potential offer, the report said. It could submit an offer for eBay as soon as later this month.
GameStop and eBay did not immediately respond to Reuters' requests for comment.