GameStop Makes $55.5 Billion Unsolicited Bid for eBay

CNBC reported Monday that GameStop has launched an unsolicited, non-binding proposal to acquire eBay for $125 per share in a combined cash-and-stock deal. The offer values the e-commerce platform at approximately $55.5 billion.

A Bold Bid With a Financing Gap

The GameStop eBay takeover proposal splits the purchase price evenly between cash and GameStop common stock. It represents a 20% premium to eBay’s most recent closing price of $104.07 and a 46% premium to where the stock sat in early February, when GameStop first began accumulating a stake.

GameStop CEO Ryan Cohen told CNBC’s *Squawk Box* Monday morning that he has not yet approached eBay’s management. He acknowledged the structural complexity of the offer while directing viewers to the company’s website for specifics. Cohen said GameStop retains the ability to issue additional shares beyond the agreed stock component to bridge any funding shortfall.

The company has secured a commitment letter from TD Bank for up to $20 billion in debt financing. GameStop also holds roughly $9.4 billion in cash on its balance sheet. Even combined, those figures fall short of the implied deal value, leaving the financing structure under scrutiny.

Background: A Meme Stock Reaches for Scale

GameStop rose to cultural prominence during a 2021 retail-trading frenzy that sent its shares surging dramatically. The company, long associated with physical video game sales, has since accumulated a significant cash position under Cohen’s leadership but struggled to articulate a clear growth strategy.

Cohen, who previously built Chewy into a major online pet supply retailer before selling it, hinted in January that GameStop was pursuing a transformational acquisition of a publicly traded company larger than itself.

Both GameStop and eBay have faced persistent pressure to adapt as consumer habits shift. GameStop’s market capitalization stood near $11 billion before Sunday’s announcement, making eBay roughly four times its size by market value.

Markets React With Skepticism

eBay shares jumped more than 13% in after-hours trading following the announcement, reaching approximately $118. That move fell well short of the $125 offer price, a gap that signals investors doubt the deal will close.

GameStop shares climbed around 4% to approximately $27.60. Cohen told the Wall Street Journal he is prepared to pursue a proxy fight if eBay’s board refuses to engage. If the transaction closes, Cohen is expected to lead the combined company as chief executive, with his stated ambition being to transform eBay into a direct competitor to Amazon.

The proposal remains subject to approval from eBay’s board, both companies’ shareholders, and relevant regulators.

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