GameStop’s $55.5B eBay Takeover Bid

CNBC reported Monday that GameStop has submitted an unsolicited, non-binding proposal to acquire eBay for $125 per share. The all-in valuation sits at approximately $55.5 billion, split evenly between cash and GameStop common stock.

A 20% Premium With Skeptics Watching Closely

The offer represents a 20% premium to eBay’s closing price last Friday. It also marks a 46% premium to eBay’s share price on February 4, the date GameStop began quietly accumulating a stake in the e-commerce company. eBay shares rose roughly 6% Monday morning to just above $110, remaining well short of the $125 target. That gap signals meaningful investor doubt the deal gets done. GameStop shares edged down about 1% to $26.30 on the day.

Cohen Outlines a Lean, High-Leverage Vision

GameStop CEO Ryan Cohen appeared on CNBC’s Squawk Box Monday and said the company has not yet held formal talks with eBay’s management. He framed the approach as deliberate, citing what he described as conflicting financial incentives among eBay’s board and executive team. Cohen argued eBay is significantly under-earning its potential. He suggested that aggressive cost cuts, particularly targeting eBay’s roughly $2.5 billion annual sales and marketing spend, could roughly double the company’s earnings power. “It’s going to be run a lot more efficiently,” Cohen told CNBC, adding the business could take on more leverage as profitability improves.

Background: A Meme Stock Reaches for a Giant

GameStop’s improbable second act began during the 2021 retail trading frenzy that made the video game chain a household name for a very different reason. Cohen took control of the company and methodically rebuilt its balance sheet. GameStop now holds approximately $9.4 billion in cash, a war chest that underpins this bid alongside a $20 billion financing commitment from TD Bank. GameStop has also built a roughly 5% stake in eBay, primarily through derivatives. Its current market capitalization sits just below $12 billion, dwarfed by eBay’s $46 billion valuation. The scale mismatch remains the central challenge for any deal to close.

Also Read: eBay Confirms Receipt of GameStop Proposal, Board to Review

What Happens if eBay Pushes Back

eBay confirmed receiving the proposal and said its board would evaluate it. Cohen has signaled he is willing to escalate. He told the Wall Street Journal he would consider taking the offer directly to eBay shareholders through a proxy fight if the board fails to engage meaningfully. Should the transaction ultimately close, Cohen is expected to lead the combined company as chief executive.

Read Next: How GameStop Rebuilt Its Balance Sheet After the Meme Stock Era