GameStop has proposed a $55.5 billion acquisition of eBay, offering $125 per share, a 20% premium over its last closing price. The retailer has already built a roughly 5% stake in eBay, signaling serious intent ahead of the formal proposal.
The deal would be financed through a combination of cash and GameStop stock. The company also secured a reported $20 billion debt commitment from TD Bank to support the transaction.
The proposed takeover stands out for its scale. GameStop’s market capitalization sits near $11.9 billion, far smaller than eBay’s valuation of about $46 billion. The attempt to acquire a company nearly four times its size marks one of the more aggressive moves in recent corporate dealmaking.
GameStop CEO Ryan Cohen has positioned the bid as a turnaround plan. In a letter to eBay, Cohen pledged $2 billion in annual cost reductions within a year of closing.
The strategy targets multiple areas, including a $1.2 billion cut in sales and marketing expenses. Cohen argued that increased spending has not translated into meaningful user growth, citing fewer than 1 million new active buyers in fiscal 2025. Additional cuts include $500 million in general and administrative costs and $300 million in product development.
GameStop estimates these changes could lift eBay’s earnings per share from $4.26 to $7.79 within the first year.
Cohen has offered to lead the combined entity as chief executive, stating he would forgo salary, bonuses, and severance, tying compensation entirely to performance.
He also outlined plans to integrate GameStop’s physical retail presence with eBay’s online marketplace. The proposal includes expanding into live commerce and strengthening categories such as collectibles, where both companies already overlap.
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Cohen has revealed that he may pursue a proxy battle if eBay’s board rejects the offer, taking the proposal directly to shareholders. The move sets up a high-stakes corporate contest that could reshape the e-commerce landscape and challenge dominant players like Amazon.
The response from eBay’s board will determine whether this ambitious bid moves forward or turns into a prolonged takeover battle.