GameStop Bids $55.5 Billion for eBay in Unsolicited Cash-and-Stock Deal

CNBC reported Monday that GameStop has launched an unsolicited, non-binding bid to acquire eBay for $125 per share in a combined cash-and-stock transaction. The implied deal value sits at roughly $55.5 billion, making it one of the boldest corporate plays in recent retail history.

A Premium Offer That Surprised the Market

The proposed price carries a 20% premium to eBay’s closing price last Friday. It also represents a 46% premium to where eBay traded on February 4, the date GameStop began quietly accumulating its position. eBay shares jumped as much as 13.4% in after-hours trading, reaching around $118. That gap below the $125 offer signals investor skepticism about whether the deal closes.

GameStop CEO Ryan Cohen confirmed the approach in an appearance on CNBC’s Squawk Box Monday morning. He said no formal conversations with eBay management had yet taken place. eBay subsequently confirmed receipt of the proposal and said its board would review it.

Financing Remains the Central Question

The transaction structure raises immediate questions. GameStop’s market capitalisation sits just below $12 billion, while eBay’s is roughly $46 billion. Cohen has secured a $20 billion financing letter from TD Bank, but a substantial funding gap persists. Cohen said the offer is split evenly between cash and GameStop common stock. He also indicated the company retains the ability to issue additional shares to bridge remaining costs, while directing reporters to the company’s website for fuller structural detail.

GameStop holds an approximately $9.4 billion cash reserve and has built a roughly 5% stake in eBay through a combination of derivatives and common stock.

Why Cohen Sees Value in eBay

Cohen’s investment case rests squarely on operational efficiency. He argued that eBay is significantly under-earning relative to its potential. He pointed to the company’s $2.5 billion annual sales and marketing spend as an area ripe for reduction. Cohen suggested earnings could roughly double within a relatively short period under tighter financial discipline and greater leverage capacity.

Background: From Meme Stock to M&A Aggressor

GameStop became a cultural phenomenon during the 2021 retail trading frenzy, when a wave of individual investors drove its shares to extraordinary highs. Cohen subsequently took control of the company and overhauled its balance sheet, accumulating billions in cash while scaling back unprofitable operations. GameStop shares slipped roughly 1% Monday to $26.30, a signal that investors remain cautious about the dilution risk posed by a stock-funded mega deal.

eBay has not yet publicly responded beyond confirming receipt of the proposal.

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