GameStop’s $55.5 Billion Bid for eBay

BBC Business reported Sunday that video game retailer GameStop has launched a surprise $55.5 billion offer to acquire e-commerce platform eBay, in a deal that would reshape the online shopping landscape.

The all-cash-and-stock proposal values eBay at $125 per share, representing a roughly $20 premium to its closing price last Friday. GameStop CEO Ryan Cohen warned he is willing to take the bid directly to eBay shareholders if the company’s board refuses to engage.

A Bold Bet From the Meme Stock King

Cohen outlined plans to strip out $2 billion in costs within twelve months of completing the transaction. The bulk of those savings would come from eBay’s sales and marketing operations, which Cohen argued had failed to grow an audience for a brand that is almost universally recognised.

Under the proposed structure, Cohen would lead the combined entity without a fixed salary or bonus package. His pay would instead be tied entirely to the new company’s performance, an arrangement designed to signal his commitment to long-term value creation.

GameStop said it has secured a commitment letter from TD Securities to provide roughly $20 billion in debt financing for the deal. The retailer’s own market capitalisation sits at approximately $11.9 billion, meaning eBay is worth around four times more than its would-be acquirer.

eBay’s Decline Shapes the Backdrop

eBay launched in 1995 as a peer-to-peer marketplace and grew into one of the internet’s defining brands. But the platform has steadily lost ground to Amazon and other competitors. Its global user base has contracted from roughly 175 million in 2018 to around 136 million today, a decline that has weighed heavily on its growth narrative.

Cohen has argued that GameStop’s approximately 1,600 US retail stores could serve as a physical backbone for eBay’s live-commerce ambitions, providing the combined platform with infrastructure its digital rivals cannot easily replicate.

Analysts Sound Caution

Sucharita Kodali, a retail analyst at research firm Forrester, told the BBC the proposal does not appear particularly attractive for eBay. Loading the company with GameStop’s debt, she argued, is a significant drawback. She acknowledged, however, that GameStop itself stands to benefit by attaching its fortunes to a much larger brand. eBay said it would review the unsolicited approach carefully.

Market reaction was mixed. eBay shares climbed around 7.5% in pre-market trading. GameStop fell roughly 5% in the same session.

GameStop’s net profit reached $418.4 million in 2025, up sharply from $131.3 million the prior year, even as revenues continued to slide.