GameStop Makes $56 Billion Offer for eBay
CNBC reported Sunday that GameStop has launched an unsolicited, non-binding GameStop eBay takeover offer worth roughly $55.5 billion. The video game retailer proposed paying $125 per share, split equally between cash and GameStop stock.
A Bid Built on Ambition
The offer carries a 20% premium over eBay’s most recent closing price of $104.07. It also represents a 46% premium to where eBay shares traded on February 4, the date GameStop began quietly accumulating a stake in the company.
GameStop CEO Ryan Cohen told the Wall Street Journal he envisions transforming eBay into a heavyweight competitor capable of challenging Amazon. Cohen suggested the combined platform could ultimately be worth hundreds of billions of dollars.
eBay shares surged more than 13% in after-hours trading, reaching approximately $118. That gap below the $125 offer price signals that markets remain doubtful the transaction will complete. GameStop shares rose around 4% to $27.60.
How GameStop Plans to Finance the Deal
GameStop has already assembled roughly 5% of eBay’s outstanding shares. To fund the acquisition, the company secured a commitment letter from TD Bank covering up to $20 billion in debt financing. GameStop’s own cash reserves of approximately $9.4 billion would cover the balance.
Cohen has signaled he will pursue a proxy fight if eBay’s board rejects the proposal outright. Under deal terms, he would lead the merged entity as chief executive.
Analysts and observers have flagged a structural oddity. GameStop’s own market capitalization stood near $12 billion before the announcement, while eBay’s was roughly $46 billion. The retailer is effectively attempting to buy a company four times its size.
Background: From Meme Stock to Deal-Maker
Cohen built his original reputation founding Chewy, an online pet supply platform that PetSmart acquired for $3.35 billion in 2017. He later built a significant GameStop position and argued publicly that the struggling retailer could reposition itself as an e-commerce destination for gaming.
His arrival on GameStop’s board in early 2021 coincided with one of modern markets’ most chaotic moments. Reddit-driven retail traders sent the stock up roughly 1,500% across two weeks. Cohen assumed the CEO role in late 2023 and returned the company to profitability by cutting costs and closing hundreds of stores.
GameStop’s bid also includes a pledge to eliminate $2 billion in annual expenses within twelve months, targeting eBay’s $2.4 billion sales and marketing budget in particular.
The offer still requires approval from eBay’s board, shareholders of both companies, and relevant regulators. eBay had not publicly responded as of the time of reporting.
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