GameStop Makes $55.5 Billion Unsolicited Bid for eBay
GameStop has launched a surprise $55.5 billion unsolicited offer to acquire e-commerce giant eBay, BBC Business reported Monday, in a deal that would reshape two of retail’s most recognizable brands.
A Bold Offer at a Premium Price
The proposed cash-and-stock bid values eBay at $125 per share. That represents a roughly $20 premium over eBay’s closing price last Friday. GameStop CEO Ryan Cohen sent a letter to eBay’s board outlining the terms and signaling he would take the offer directly to shareholders if the board declines. Cohen pledged to deliver $2 billion in cost savings within one year of closing. The bulk of those cuts would target eBay’s sales and marketing division. Cohen argued that division had failed to grow a platform with near-universal brand recognition. Cohen also said he would accept no salary or bonus in the combined company. His compensation would be tied entirely to performance of the merged entity. eBay said it would give the unsolicited approach careful consideration.
Financing and Market Reaction
GameStop, which currently carries a market capitalisation of roughly $11.9 billion, has secured a commitment letter from TD Securities to provide approximately $20 billion in debt financing. That arrangement has drawn scrutiny. Retail analyst Sucharita Kodali of Forrester Research told the BBC the offer was not particularly attractive because it would load eBay with GameStop’s borrowed obligations. She noted the deal makes more strategic sense for GameStop, which could benefit from association with a larger platform. eBay shares rose roughly 7.5% in pre-market trading following the announcement. GameStop shares fell around 5%.
Background: Two Companies at a Crossroads
GameStop became a cultural flashpoint during the Covid-19 pandemic. Retail investors coordinated to drive up shares in companies that hedge funds had shorted, briefly sending GameStop’s stock to extraordinary highs. The chain has since stabilized under Cohen, who took the chief executive role in 2023. Net profit climbed to $418.4 million in 2025, up sharply from $131.3 million the prior year, even as revenues declined. eBay has faced a different kind of pressure. Launched in 1995, the marketplace once boasted 175 million users globally. That figure has since fallen to 136 million as Amazon and other rivals captured market share.
What Cohen Wants to Build
Cohen’s vision centers on using GameStop’s roughly 1,600 US retail locations as a physical network supporting eBay’s live commerce ambitions. He framed the combination as a genuine challenger to Amazon’s dominance. Whether eBay’s board agrees remains to be seen.
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