GameStop has made an unsolicited $55.5 billion bid to acquire eBay. The news comes from a press release from the video game retailer. The non-binding offer: $125 per share. Half cash, half stock. That’s a 46% premium to eBay’s share price. GameStop’s already holding a 5% stake. CEO Ryan Cohen’s making a big bet. He wants to transform GameStop from a struggling brick-and-mortar chain into a major online marketplace player.
How’s GameStop financing this? $9.4 billion in cash and liquid investments. Plus up to $20 billion in third-party financing from TD Securities. The company’s projecting $2 billion in annual cost savings within a year of closing. They’ll cut what they’re calling inefficient spending at eBay. GameStop pointed to eBay’s $2.4 billion in sales and marketing expenses in 2025. The platform added only about one million net active buyers during that period.
The strategy? Integrate eBay’s marketplace into GameStop’s 1,600 U.S. retail locations. They’d become hubs for authentication, intake, fulfillment, and live commerce. “eBay is under-valued and could be worth ‘hundreds of billions of dollars,’” Cohen said in the company’s statement.
eBay confirmed receipt of the proposal. But they haven’t engaged in discussions with GameStop. “Shareholders currently need not act,” the company said.
The bid caps a remarkable turnaround at GameStop under Cohen’s leadership. He’s slashed selling, general, and administrative costs by 47%. The company went from a $381 million loss in 2021 to $418 million in net income in 2025. Cohen owns 9% of GameStop. He takes no salary. He could reportedly earn stock options worth up to $35 billion. The conditions? GameStop’s market cap hits $100 billion with sufficient profitability.
The acquisition attempt puts pressure on eBay’s management. They’ll need to address concerns over spending efficiency and growth metrics. The deal would dramatically reshape GameStop’s business model. It’s a test. Can an activist CEO unlock perceived value in a legacy e-commerce platform? Cohen’s betting on aggressive cost-cutting and physical retail integration. Market reactions have been mixed. GameStop shares are showing volatility. eBay’s stock has risen on takeover speculation.
