GameStop Makes $55.5 Billion Takeover Offer for eBay

BBC Business reported Sunday that video game retailer GameStop has launched a surprise $55.5 billion bid to acquire e-commerce platform eBay in a combined cash-and-stock deal.

The proposed offer prices eBay shares at $125 each, representing a $20 premium to Friday’s closing price in New York. GameStop CEO Ryan Cohen said he is willing to bypass eBay’s board and take the proposal directly to shareholders if directors reject the approach.

Cohen Outlines Vision for a Bigger eBay

In a letter to eBay, Cohen described an ambition to transform the platform into a far more formidable rival to Amazon. He pledged to deliver $2 billion in cost savings within twelve months of completing the deal. The bulk of those cuts would fall on eBay’s sales and marketing operations, which Cohen argued had failed to grow an audience for what he called a platform with near-universal name recognition.

Cohen also said he would serve as chief executive of the combined company without a salary or bonus, tying his compensation entirely to the performance of the merged entity.

Financing and Market Reaction

GameStop’s current market capitalisation sits at roughly $11.9 billion, making eBay worth approximately four times more than the bidder. To bridge the gap, the retailer has secured a commitment letter from TD Securities for around $20 billion in debt financing.

Markets responded quickly when news of the potential offer emerged late Friday. eBay shares surged more than 13% in after-hours trading, while GameStop stock climbed around 4%.

Background: Two Brands With Complicated Legacies

GameStop became a household name during the Covid-19 pandemic when retail investors drove its share price sharply higher as part of the meme stock phenomenon. Under Cohen’s leadership since 2023, the company has stabilised. Its net profit reached $418.4 million in 2025, up from $131.3 million the prior year, though revenues continued to slide.

eBay, founded in 1995, was once among the internet’s most recognised brands. Its active user base has dropped to 136 million globally from 175 million in 2018, squeezed by competition from Amazon and other platforms.

Analysts Sound a Cautious Note

Retail industry analyst Sucharita Kodali of Forrester told the BBC the offer did not look particularly attractive for eBay, warning that it would load the company with GameStop’s debt burden. She acknowledged the logic for GameStop, which could lift its own valuation by attaching itself to a larger, better-known business. “The truth is, we are not necessarily putting two strong companies together,” Kodali said.

eBay had not publicly responded to the proposal as of Sunday morning.

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