GameStop Makes $56 Billion Bid to Acquire eBay
In a stunning move that has sent shockwaves through Wall Street, video game retailer GameStop has launched an unsolicited $56 billion (£41 billion) bid to purchase e-commerce giant eBay. The offer, a mix of cash and stock, values eBay at $125 per share, which is a significant premium over its recent trading price.
The audacious proposal comes from GameStop CEO Ryan Cohen, who famously led a turnaround at the company following the 2021 "meme stock" phenomenon. Cohen argues that eBay, despite its universal brand recognition, has stagnated and could "be a legit competitor to Amazon" under his leadership.
The deal is particularly unusual because eBay is roughly four times the size of GameStop. To fund the takeover, GameStop has secured a $20 billion debt commitment from TD Securities. Cohen’s vision involves transforming GameStop’s 1,600 physical U.S. stores into shipping and drop-off hubs for eBay, while also introducing "live commerce" broadcasts from retail locations.
Cohen has pledged to lead the combined company with a unique compensation structure. According to the proposal, he would receive no salary or bonuses, being "compensated solely based on the performance of the combined company."
A central pillar of the bid is a plan to slash $2 billion in annual costs at eBay within a single year. GameStop criticized eBay’s recent performance, noting that the company spent $2.4 billion on marketing in 2025 but only added one million new customers.
"eBay should be worth - and will be worth - a lot more money," Cohen told the Wall Street Journal, signaling that he is prepared to take the offer directly to shareholders if eBay's board rejects the friendly approach.
While eBay’s stock surged over 5% following the news of the bid, GameStop’s shares tumbled by more than 9%. Analysts have been quick to point out the steep uphill battle for such a merger. Morgan Stanley noted that the two firms have "fundamentally different" business models, while others warned of the massive debt load required.
Retail analyst Sucharita Kodali of Forrester expressed doubt about the deal, suggesting that the deal might be more about boosting GameStop's valuation than creating a retail powerhouse. "The truth is, we are not necessarily putting two strong companies together," she said.
Even prominent investors have weighed in. Michael Burry, the famed "Big Short" investor, criticized the strategy as "pedestrian," suggesting the true intent might be to dominate the used goods and collectibles market rather than taking on Amazon directly.
eBay has confirmed receipt of the offer and stated it will review the proposal, noting there were no prior discussions between the two companies.
