GameStop Makes $55.5 Billion Takeover Bid for eBay

BBC Business reported Sunday that GameStop has launched a surprise GameStop eBay takeover bid worth $55.5 billion. The offer values eBay at $125 per share. That represents a roughly $20 premium to Friday’s closing price in New York.

The proposal is structured as a mix of cash and stock. GameStop chief executive Ryan Cohen said he is willing to bypass eBay’s board entirely. He would take the offer straight to shareholders if directors decline to engage.

Cohen Outlines His Case for the Deal

In a letter addressed directly to eBay’s board, Cohen argued that eBay’s physical retail presence has been almost nonexistent. He said GameStop’s roughly 1,600 US store locations could underpin a national “live commerce” network for the combined business. Cohen also committed to slashing $2 billion in costs within 12 months of closing. The bulk of those savings would come from eBay’s sales and marketing division. Cohen described that unit as underperforming given eBay’s near-universal brand recognition.

Cohen added that he would serve as chief executive of the merged company. He would draw no salary or bonuses, taking compensation only in the form of equity tied to performance.

To fund the transaction, GameStop has secured a commitment letter from TD Securities covering approximately $20 billion in debt financing. GameStop’s own market capitalisation sits near $11.9 billion, roughly one-quarter of what it is offering to pay.

Background: Two Brands With Complicated Histories

GameStop rose to cultural prominence during the pandemic-era meme stock frenzy. Retail investors piled into shares of companies heavily shorted by institutional traders. The chain survived that turbulence and has since posted improving profits. Net income reached $418.4 million in 2025, up sharply from $131.3 million the year prior, even as revenues declined.

eBay’s story runs in a different direction. Founded in 1995, the platform once counted 175 million active users globally. That figure has since slipped to 136 million as Amazon and other competitors have eroded its share of online commerce.

Analysts See Mixed Signals

Retail industry analyst Sucharita Kodali of Forrester told the BBC the proposal is not obviously attractive for eBay. She argued the structure would load eBay with GameStop’s debt obligations. She also noted the deal would not pair two particularly strong businesses together. For GameStop, she said, the strategic logic is clearer. Attaching itself to a larger platform could lift its own valuation materially.

eBay shares jumped more than 13% in after-hours trading when deal reports surfaced Friday. GameStop shares added around 4%.

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