GameStop Bids $55.5 Billion for eBay in Unsolicited Cash-and-Stock Offer
CNBC reported Monday that GameStop has launched a GameStop eBay takeover bid, offering $125 per share in a non-binding, unsolicited proposal that would value the e-commerce platform at roughly $55.5 billion.
Cohen Pitches Ambitious Deal With Limited Detail
The proposal splits consideration evenly between cash and GameStop common stock. It carries a 20% premium to eBay’s most recent closing price and a 46% premium to its level on February 4, when GameStop began quietly accumulating a stake in the company.
GameStop CEO Ryan Cohen disclosed in a CNBC interview Monday that he has secured a $20 billion financing commitment from TD Bank. The company’s own cash reserves of roughly $9.4 billion and the potential issuance of new shares would cover the remainder. Cohen acknowledged he has not yet held any direct conversations with eBay’s management team.
eBay confirmed receipt of the offer and said its board would review the proposal.
Market Reaction Signals Deep Skepticism
eBay shares climbed roughly 6% in early Monday trading, reaching just above $110. That remains well below the $125 offer price, signaling that investors doubt the deal will ultimately close.
The financing challenge is stark. GameStop’s market capitalization sits near $12 billion, a fraction of the roughly $56 billion implied transaction value. GameStop shares dipped approximately 1% to around $26.30 on the day.
Cohen argued that eBay is significantly under-earning relative to its potential. He suggested that leaner cost management could roughly double eBay’s earnings within a short timeframe. He specifically pointed to eBay’s roughly $2.5 billion annual sales and marketing budget as a major area for reduction.
Background: From Meme Stock to Would-Be Acquirer
GameStop became a household name during the 2021 retail-investor frenzy that sent its shares soaring. Cohen, who built his reputation selling Chewy before joining GameStop’s board, has since restructured the business and accumulated a substantial cash position.
The company has built approximately a 5% stake in eBay, primarily through derivatives alongside common shares. Cohen told CNBC the position gives GameStop enough standing to demand that eBay’s board formally evaluate the offer.
Proxy Fight on the Table
Cohen signaled he is prepared to escalate if eBay resists. He told CNBC he would consider taking the bid directly to eBay shareholders through a proxy fight if the board declines to engage. He framed the acquisition as a path to building a significantly larger consumer business, citing GameStop’s own financial recovery as evidence of his operational track record.
Read Next: Fed Holds Rates Steady as Powell Flags Tariff Uncertainty
