GameStop’s $55.5 Billion eBay Bid

BBC Business reported Monday that video game retailer GameStop has launched a surprise $55.5 billion offer to acquire e-commerce platform eBay. The GameStop eBay takeover proposal — structured as a mix of cash and stock — prices eBay shares at $125 each. That represents a roughly $20 premium to eBay’s Friday closing price.

Cohen Pitches Amazon-Scale Ambition

GameStop chief executive Ryan Cohen told the Wall Street Journal that eBay is significantly undervalued and could develop into a credible competitor to Amazon. Cohen, who took the top job at GameStop in 2023, said he would serve as CEO of the combined entity without salary or bonus. His compensation would depend entirely on the combined company’s performance. He added that he would bypass eBay’s board and approach shareholders directly if directors rejected the proposal.

eBay said it would review the offer. Its shares climbed around 5.5% Monday morning in New York. GameStop shares fell more than 4%.

Wall Street Skeptical on the Pairing

Analysts were quick to flag concerns. Morgan Stanley described the two companies as having fundamentally different business models. Bernstein pointed to GameStop’s comparatively modest balance sheet and said it would be surprised if the bid progressed. Retail analyst Sucharita Kodali of Forrester told BBC Business the offer did not look particularly attractive for eBay. Loading eBay with GameStop’s debt obligations would be a drawback, she said. Kodali did concede the deal makes strategic sense for GameStop. Attaching itself to a larger, better-known platform could lift GameStop’s own market valuation.

GameStop has secured a commitment letter from TD Securities to provide roughly $20 billion in debt financing for the transaction. Cohen also pledged to cut eBay’s costs by $2 billion within a year of closing, primarily targeting its sales and marketing operations.

From Meme Stock to M&A Aggressor

GameStop became a household name during the pandemic-era meme stock frenzy, when retail investors drove up prices in stocks that professional short sellers were betting against. The company still operates around 1,600 U.S. stores. Under Cohen’s stewardship its net profit climbed to $418.4 million in 2025, up from $131.3 million the prior year, even as overall revenues declined. GameStop’s current market cap sits near $11.9 billion — roughly a quarter of the price it is offering for eBay.

eBay, founded in 1995, once defined consumer-to-consumer online commerce. Its global user base has since contracted from 175 million in 2018 to around 136 million today, pressured by Amazon and other platforms.

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