GameStop announced on Sunday that it has made an unsolicited, non-binding offer to acquire eBay for $125 per share in a cash-and-stock deal, valuing the e-commerce platform at approximately $55.5 billion. The offer is split evenly between cash and GameStop common stock, representing a 20% premium to eBay's Friday closing price of $104.07 and a 46% premium to its price on February 4th, when GameStop began building a stake in the company [1].
Following the announcement, eBay shares surged as much as 13.4% in after-hours trading to around $118, while GameStop shares rose approximately 4% to $27.6 per share [1]. GameStop, which became widely known as a 'meme stock' during the 2021 retail trading frenzy, is now aiming for a significant expansion into e-commerce. CEO Ryan Cohen stated his ambition to make eBay a much larger competitor to Amazon.com, asserting, "EBay should be worth — and will be worth — a lot more money," and expressing his vision to turn eBay into a company valued at hundreds of billions of dollars [1].
GameStop has accumulated a roughly 5% stake in eBay and has secured a commitment letter from TD Bank for up to $20 billion in debt financing to support the deal. The remainder would be funded from GameStop's cash reserves of approximately $9.4 billion [1]. The proposal is subject to approval from eBay's board of directors, regulators, and shareholders of both companies. As of Friday, GameStop's market capitalization was about $12 billion, while eBay's stood at around $46 billion, raising questions about the feasibility of the bid given the size disparity [1].
Cohen indicated he is prepared to take the offer directly to shareholders in a proxy fight if necessary and is expected to serve as CEO of the combined company should the deal close. GameStop's proposal includes cutting $2 billion in annual costs within a year, mainly targeting eBay's sales and marketing budget, which was $2.4 billion in fiscal 2025, despite net active buyer growth remaining flat at less than 0.75%. The company projects that these cost reductions would increase eBay's earnings per share to $7.79 from $4.26 in the first year [1]. Additionally, GameStop highlighted its network of approximately 1,600 U.S. retail stores as potential physical infrastructure for eBay's marketplace [1].
EBay did not immediately respond to requests for comment, and it remains unclear whether eBay's board will consider GameStop a credible acquirer [1].
CONCLUSION
GameStop's bold $55.5 billion bid for eBay marks a significant move to reshape the e-commerce landscape and directly challenge Amazon. The market reacted positively, with both companies' shares rising sharply. However, the feasibility of the deal remains uncertain due to the size disparity and pending approvals from eBay's board and other stakeholders.