GameStop Makes $56 Billion Bid for eBay

CNBC reported Sunday that GameStop has submitted an unsolicited, non-binding proposal to acquire eBay for $125 per share, valuing the e-commerce giant at roughly $55.5 billion in a cash-and-stock transaction split evenly between the two forms of consideration.

The GameStop eBay takeover offer represents a 20% premium to eBay’s closing price on Friday and a 46% premium to its level on February 4. That date is when GameStop began quietly accumulating a stake in the platform, according to the company’s statement.

Markets React With Cautious Skepticism

eBay shares surged more than 13% in after-hours trading following the announcement, reaching approximately $118. That remains well short of the proposed $125 per share price, signalling meaningful investor doubt that the deal will be completed. GameStop shares rose roughly 4% to around $27.60.

GameStop CEO Ryan Cohen told the Wall Street Journal that he intends to transform eBay into a formidable competitor to Amazon.com, with ambitions for a combined entity worth hundreds of billions of dollars. Cohen also confirmed he is willing to pursue a proxy fight to take the offer directly to eBay shareholders if the board resists.

How GameStop Plans to Finance the Deal

GameStop has built a roughly 5% ownership stake in eBay ahead of the formal proposal. The company has secured a commitment letter from TD Bank for up to $20 Billion in debt financing. Its existing cash reserves of approximately $9.4 Billion would fund the remainder of the transaction.

The proposal still requires approval from eBay’s board, regulators, and shareholders of both companies. eBay had not responded publicly to the offer at the time of reporting. Should the acquisition proceed, Cohen is expected to lead the combined company as chief executive.

Also Read: What Is a Proxy Fight and How Does It Work?

Cohen’s Background and the Road to This Bid

Cohen built his business reputation by founding Chewy, an online pet supply retailer sold to PetSmart for $3.35 Billion in 2017. He accumulated a major GameStop stake in late 2020 and publicly pushed the retailer to embrace e-commerce more aggressively. He joined the board in January 2021, just as Reddit’s WallStreetBets community sent GameStop shares roughly 1,500% higher in two weeks. Cohen became CEO in September 2023 and returned the company to profitability through deep cost reductions and store closures. He had previously told CNBC in January that he was targeting a “transformational” acquisition larger than GameStop itself.

Also Read: GameStop’s Path Back to Profitability Under Ryan Cohen

The Challenge Ahead

Both companies have faced headwinds from shifting consumer habits. GameStop’s market capitalisation stood at roughly $12 Billion before Sunday’s news, while eBay was valued at approximately $46 Billion. That size disparity makes this one of the most audacious bids in recent retail history. GameStop says it would target $2 Billion in annual cost savings within the first year, focusing heavily on eBay’s sales and marketing expenditure, which totalled $2.4 Billion in fiscal 2025 despite flat buyer growth.

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