GameStop launched a daring unsolicited offer to acquire eBay on Sunday, proposing a cash-and-stock deal valued at roughly $55.5 billion that would combine the meme-stock darling with one of the original giants of online commerce.
The gaming retailer offered $125 per share for eBay, split evenly between cash and GameStop stock, representing a 20% premium to eBay’s Friday closing price of $104.07 and a 46% premium to its share price on Feb. 4, when GameStop began building its stake.
eBay shares surged as much as 13.4% in after-hours trading to around $118, while GameStop rose about 4% to $27.60.GameStop said it has accumulated a roughly 5% stake in eBay and secured a commitment letter from TD Bank for up to $20 billion in debt financing.
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The remainder of the deal would be funded from GameStop’s substantial $9.4 billion cash reserves.
In a statement, GameStop positioned the deal as a transformative opportunity to create a much stronger competitor to Amazon. Ryan Cohen, GameStop’s chairman and CEO, told The Wall Street Journal he sees significant untapped potential in eBay.
“EBay should be worth — and will be worth — a lot more money,” Cohen said. “I’m thinking about turning eBay into something worth hundreds of billions of dollars.”
If the deal goes through, Cohen is expected to become CEO of the combined company. He has made clear he is willing to take the offer directly to eBay shareholders through a proxy fight if the board rejects the proposal.
GameStop argued that eBay suffers from bloated operations and stagnant growth. The company highlighted eBay’s $2.4 billion sales and marketing budget in fiscal 2025, which failed to drive meaningful user growth — net active buyers increased less than 0.75%.
“More spend is not producing more users on a marketplace with near-universal brand recognition,” GameStop said in its offer.
The bidder pledged to cut $2 billion in annual costs within the first year, which it projects would boost eBay’s earnings per share (under U.S. GAAP) from $4.26 to $7.79 in the first full year post-deal.
GameStop also pitched its network of approximately 1,600 U.S. retail stores as valuable physical infrastructure that could support eBay’s marketplace through authentication, intake, fulfillment, and live commerce opportunities.
Questions of Credibility and Feasibility
The bid faces significant hurdles. GameStop’s market capitalization stood at around $12 billion before the announcement, compared with eBay’s roughly $46 billion. Many observers question whether eBay’s board will view the much smaller company, despite its large cash pile, as a credible buyer for an e-commerce platform four times its size.
Both companies have struggled in recent years to adapt to changing consumer habits and intense competition. eBay has long battled to regain momentum against Amazon’s dominance, while GameStop has relied heavily on its passionate retail investor base after the 2021 meme-stock frenzy.
Cohen first signaled his ambitions in January, telling CNBC that he was eyeing a “transformational” acquisition of a larger publicly traded consumer company — something that “never been done before within the history of the capital markets.”
Wall Street’s initial reaction was mixed but leaned positive for eBay shareholders, who stand to receive a substantial premium if the deal is consummated. GameStop investors appeared cautiously optimistic that Cohen, the activist investor who previously engineered a major shift at GameStop, could successfully execute another bold move.
The proposal remains non-binding and is subject to approval by eBay’s board, regulatory authorities, and shareholders of both companies. eBay has not yet publicly responded to the offer.
The move represents one of the most audacious takeover attempts in recent memory, pitting a meme-stock-fueled retailer against a seasoned but struggling e-commerce veteran. Cohen’s ability to convince eBay’s board, and ultimately its shareholders, that he can unlock “hundreds of billions” in value will be one of the most interesting events of the year.