GameStop Corp. has launched an audacious bid to acquire eBay Inc. in a transaction valued at approximately $55.5 billion, seeking to transform the video game retailer into a major force in global e-commerce.
In a press release issued Sunday, GameStop said it submitted a non-binding proposal to purchase 100% of eBay for $125 per share in a combination of cash and stock. The offer consists of 50% cash and 50% GameStop common stock and represents a 46% premium to eBay’s unaffected closing price on February 4, the day GameStop began building its position in the company.
The proposed deal would value eBay at roughly $55.5 billion on an undiluted equity basis, implying a 27% premium to the company’s 30-day volume-weighted average share price and a 36% premium to its 90-day VWAP.
The bid is one of the most ambitious takeover attempts in recent retail and technology history, particularly given that eBay’s market capitalization has substantially exceeded GameStop’s in recent years. GameStop said it has accumulated a 5% economic stake in eBay through derivatives and common stock ownership and plans to file a Schedule 13D and Hart-Scott-Rodino notification.
Ryan Cohen, GameStop’s chairman and chief executive, would lead the combined company as CEO if the transaction is completed. Cohen has framed the acquisition as a strategic effort to build a larger and more competitive e-commerce platform, leveraging both companies’ consumer reach and marketplace capabilities.
GameStop argued that eBay has significant operational inefficiencies and said the transaction would unlock at least $2 billion in annualized cost savings within 12 months of closing. The company specifically criticized eBay’s marketing spend, noting that eBay spent $2.4 billion on sales and marketing in fiscal 2025 while increasing active buyers by only one million, from 134 million to 135 million.
According to GameStop, the planned savings would come from reducing sales and marketing expenses, trimming product development costs, and consolidating general and administrative functions across the combined business. The company said those reductions alone would increase eBay’s diluted GAAP earnings per share from $4.26 to $7.79 in the first year following the merger.
To support its financing plan, GameStop said it would fund the cash component of the transaction using its approximately $9.4 billion in cash and liquid investments, together with acquisition financing. The company said TD Securities has provided a highly confident letter for up to $20 billion in third-party financing.
GameStop also emphasized the strategic value of its approximately 1,600 U.S. retail locations, which it believes could strengthen eBay’s operations by serving as physical hubs for authentication, intake, fulfillment, and live commerce. The company argued that combining eBay’s online marketplace with GameStop’s physical footprint would create a differentiated omnichannel platform.
The proposal highlights Cohen’s increasingly aggressive strategic ambitions for GameStop, which has undergone a dramatic financial turnaround under his leadership. Since taking control in 2021, Cohen has overseen the retailer’s shift from a $381 million net loss to $418 million in net income in fiscal 2025, while sharply reducing operating expenses and eliminating legacy debt.
There is no guarantee that eBay will engage with the proposal or that a transaction will ultimately be completed. However, the unsolicited bid puts immediate pressure on eBay’s board to evaluate whether to enter negotiations, reject the offer, or seek alternatives.
If consummated, the deal would reshape the online marketplace sector and create one of the world’s largest consumer commerce platforms.
