GameStop Makes $55.5 Billion Unsolicited Bid for eBay
BBC Business reported Sunday that GameStop has launched a $55.5 billion unsolicited takeover offer for e-commerce platform eBay. The surprise bid from the video game retailer values eBay shares at $125 each, a $20 premium to Friday’s closing price on the New York Stock Exchange.
Cohen Promises Deep Cost Cuts and No Salary
GameStop CEO Ryan Cohen outlined the deal in a letter sent directly to eBay’s board. Cohen said he would target $2 billion in cost reductions within 12 months of closing. The bulk of those cuts, roughly $1.2 billion, would come from trimming eBay’s sales and marketing budget. Cohen argued that heavy spending in that area had failed to meaningfully grow the platform’s user base, despite what he called near-universal brand recognition. He also confirmed he would take no salary, no cash bonuses, and no severance package, tying his entire compensation to the performance of the merged business.
Financing and Strategic Logic
GameStop’s own market capitalisation sits near $11.9 billion, making this a deal several times its own size. To bridge the gap, the company has secured a commitment letter from TD Securities for roughly $20 billion in debt financing. Cohen’s pitch to eBay shareholders frames the combined company as a far more capable challenger to Amazon. GameStop’s approximately 1,600 remaining US retail stores would serve as a physical infrastructure layer for eBay’s live commerce ambitions, Cohen argued.
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Background: From Meme Stock to M&A Player
GameStop’s journey to this moment is one of the stranger arcs in recent market history. During the pandemic, retail traders rallying around investor and influencer Keith Gill, widely known online as Roaring Kitty, sent the stock into a historic short squeeze that became a defining moment for so-called meme stocks. AMC Entertainment and BlackBerry were caught in the same frenzy. Cohen took the CEO role in 2023 and has since pushed to redirect GameStop away from its shrinking physical retail base toward a more durable e-commerce model. This bid represents the most dramatic step in that pivot yet.
Market Reaction and What Comes Next
eBay shares surged more than 13% in after-hours trading on Friday when reports of a potential offer first circulated. GameStop has not yet received a public response from eBay’s board, and BBC Business noted the broadcaster had reached out to eBay for comment. Whether eBay engages or rebuffs the approach will determine whether this becomes a protracted public contest or a swift rejection.
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