GameStop Makes $56 Billion Bid for eBay

CNBC reported Sunday that GameStop has launched a $56 billion unsolicited offer to acquire eBay. The video game retailer proposed paying $125 per share in a cash-and-stock deal split evenly between the two instruments. The bid represents a 20% premium to eBay’s most recent Friday close.

Cohen Targets Amazon With Bold eBay Vision

GameStop CEO Ryan Cohen told the Wall Street Journal that his ambition extends well beyond the current bid price. Cohen said eBay should eventually be worth hundreds of billions of dollars and framed the acquisition as a direct challenge to Amazon’s e-commerce dominance. GameStop has quietly accumulated roughly a 5% stake in eBay in the months preceding Sunday’s announcement.

To fund the deal, GameStop has secured a commitment letter from TD Bank covering up to $20 billion in debt financing. The remaining balance would draw on the company’s existing cash reserves of approximately $9.4 billion. Cohen has also signaled willingness to pursue a proxy fight if eBay’s board rejects the offer outright.

A Mismatch in Market Caps Raises Questions

The size difference between the two companies is stark. Before Sunday’s news broke, GameStop carried a market capitalisation of roughly $11 billion. EBay, by contrast, was valued at approximately $46 billion, making it more than four times larger. That disparity has already prompted questions among analysts about whether eBay’s board will treat GameStop as a credible acquirer. EBay had not responded publicly to the proposal as of the CNBC report.

Background: Cohen’s Retail Turnaround Track Record

Cohen built his reputation by co-founding online pet retailer Chewy and selling it for $3.35 billion before taking the helm at GameStop. He joined the retailer’s board in 2021 at the height of the meme-stock frenzy and later became CEO, steering the company toward cash preservation while the core games business continued to shrink. In January, Cohen told CNBC the company was pursuing a deal he described as transformational and unlike anything previously attempted in capital markets.

Cost Cuts and Stores as the Strategic Pitch

GameStop’s proposal includes a commitment to cut $2 billion in annual costs within the first year, with eBay’s sales and marketing budget identified as the primary target. That budget reached $2.4 billion in fiscal 2025 while active buyer growth barely moved. GameStop also pitched its roughly 1,600 U.S. retail locations as physical infrastructure for authentication, intake, and fulfilment services. The company projects those combined moves would lift eBay’s earnings per share from $4.26 to $7.79 in year one. EBay shares surged more than 13% in after-hours trading following the announcement. GameStop rose around 4%.

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