GameStop Makes $55.5 Billion Bid for eBay in Move That Would Reshape Retail Commerce

GameStop (GME) submitted a non-binding proposal on May 3 to acquire 100% of eBay at $125.00 per share in a combination of cash and stock, valuing the deal at approximately $55.5 billion, according to a Business Wire release from GameStop. eBay confirmed receipt of the proposal in a separate PR Newswire release and said its board will review the offer with a focus on shareholder value. GameStop has built a 5% stake in eBay ahead of the proposal.

If completed, the transaction would represent one of the largest retail-sector mergers in recent years.

The Proposal Terms

GameStop’s offer of $125 per share represents a premium to eBay’s recent trading price. The company said it plans to fund the deal with cash on hand plus third-party financing, with a portion of the consideration paid in GameStop stock.

CEO Ryan Cohen told CNBC on May 4 that GameStop could issue additional shares to finance the transaction, a statement that introduces dilution risk for GME shareholders. eBay’s board has not indicated whether it views the proposal favorably. The offer is non-binding, meaning no definitive agreement exists and either party can walk away without penalty at this stage.

Background

GameStop’s transformation under Cohen, who took control of the company in 2021 after a viral short-squeeze campaign drove its shares to historic highs, has focused on rebuilding the balance sheet and exploring new business directions for the legacy video game retailer.

The company accumulated significant cash reserves by reducing its retail footprint and cutting costs over 2022 and 2023. GameStop later announced in early 2025 that it would add Bitcoin to its corporate treasury, aligning itself with the trend of companies holding cryptocurrency as a balance sheet reserve.

The eBay bid extends that pivot into an aggressive acquisition strategy targeting a much larger peer in the e-commerce space.

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What to Watch

eBay’s board response will be the key near-term catalyst. The company could reject the proposal outright, invite GameStop to submit a formal binding offer with financing commitments, or open negotiations.

Institutional eBay shareholders will pressure the board to extract maximum value regardless of strategic fit. Cohen’s willingness to dilute GameStop shareholders by issuing new stock to fund the deal will face scrutiny from GME investors who backed the company’s cash-preservation strategy.

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