GameStop Makes $55.5bn Bid For eBay, Vows To Build ‘Hundreds Of Billions’ Platform
GameStop has launched a $55.5 billion bid to acquire eBay, aiming to transform the struggling marketplace into a major rival.
GameStop has launched a $55.5 billion bid to acquire eBay, aiming to transform the struggling marketplace into a major rival.
US video game retailer GameStop has announced an unsolicited, non-binding offer to acquire eBay for $125 per share in a cash-and-stock deal, valuing the online marketplace at approximately $55.5 billion.
In a statement released Sunday, GameStop said the proposal — split evenly between cash and its common stock — represents a 20 per cent premium to eBay’s Friday closing price of $104.07, and a 46 per cent premium to its February 4 closing price, when the company began building its stake.
Market reaction was cautious, with eBay shares rising as much as 13.4 per cent in after-hours trading to about $118, still below the offer price, suggesting investor scepticism about the deal’s prospects. GameStop shares, meanwhile, rose around 4 per cent to $27.60.
GameStop Chief Executive Ryan Cohen said he sees significant upside in the acquisition, positioning eBay as a stronger rival to Amazon.com.
“EBay should be worth — and will be worth — a lot more money,” Cohen said. “I’m thinking about turning eBay into something worth hundreds of billions of dollars.”
GameStop disclosed that it has built a roughly 5 per cent stake in eBay and secured a commitment letter from TD Bank for up to $20 billion in debt financing, with the remainder to be funded from its $9.4 billion cash reserves.
The proposal remains subject to approval by eBay’s board, regulators, and shareholders of both companies. eBay did not immediately respond to requests for comment.
The audacious bid has raised concerns over its viability, given the disparity in size between the two companies. GameStop’s market capitalisation stood at roughly $11–12 billion before the announcement, compared with eBay’s valuation of about $46 billion.
Both companies have faced challenges adapting to shifting consumer preferences, and it remains uncertain whether eBay’s board will view GameStop as a credible acquirer.
Cohen, however, signalled he is prepared to escalate the process if necessary.
“I’m thinking about turning eBay into something worth hundreds of billions of dollars,” Cohen reiterated, adding in earlier remarks: “It’s gonna be really big. Really big. Very, very, very big.”
He also told the Wall Street Journal he would consider taking the offer directly to shareholders through a proxy fight if required. If successful, Cohen is expected to become Chief Executive of the combined entity.
Cohen first hinted at such a move in January, describing a potential acquisition as “transformational” and “never been done before within the history of the capital markets.”
As part of its proposal, GameStop said it aims to cut $2 billion in annual costs within a year, targeting eBay’s sales and marketing expenditure, which reached $2.4 billion in fiscal 2025 despite minimal buyer growth.
“More spend is not producing more users on a marketplace with near-universal brand recognition,” the company said.
GameStop projected that these cost reductions could lift eBay’s earnings per share to $7.79 from $4.26 within the first year.
The company also outlined plans to leverage its 1,600 U.S. retail stores as physical infrastructure for eBay’s marketplace, supporting authentication, fulfilment, and live commerce operations.
Cohen, a Canadian entrepreneur, built his reputation as founder of Chewy, which was sold to PetSmart for $3.35 billion in 2017.
He later became a central figure in GameStop’s transformation, joining its board in January 2021 during the “meme stock” trading frenzy fuelled by retail investors on Reddit. He assumed the CEO role in September 2023, leading a turnaround focused on cost-cutting and store closures.
eBay, for its part, has struggled to keep pace with rivals including Amazon and newer specialised resale platforms. After peaking at $100 billion in gross merchandise volume in 2020, its GMV declined to $79.6 billion in 2025, reflecting challenges in retaining active buyers.
The proposed takeover now sets the stage for a high-stakes battle that could reshape both companies — if it can overcome significant financial and regulatory hurdles.
