GameStop has proposed a $56 billion acquisition of eBay in a cash-and-stock deal, marking one of the most ambitious takeover attempts in recent years. CEO Ryan Cohen is offering $125 per share, structured as a 50-50 mix of cash and stock, representing a premium of about 20 percent based on eBay’s Friday closing price.
The proposal is notable given the size disparity, with eBay’s market capitalization of about $46 billion nearly four times larger than GameStop’s $12 billion valuation. GameStop has already built a 5 percent stake in eBay through shares and derivatives, signaling strategic intent ahead of the unsolicited bid, Reuters news report said.
Ryan Cohen believes the combined entity could compete directly with Amazon, citing operational synergies and cost efficiencies. He has projected $2 billion in annualized cost reductions within 12 months of closing, which would significantly boost earnings per share. GameStop’s 1,600 U.S. retail locations are expected to play a key role in enabling authentication, fulfillment, intake, and live commerce services for eBay’s platform.
To finance the transaction, GameStop has secured a commitment letter for about $20 billion in debt from TD Securities, a subsidiary of TD Bank. The company also reported $9.4 billion in cash and liquid investments as of January 31, with additional funding expected from third-party equity and potential backing from Middle Eastern sovereign wealth funds.
Ryan Cohen has indicated he may take the offer directly to shareholders through a proxy fight if eBay’s board does not engage. He also plans to become CEO of the combined entity post-acquisition.
The move reflects Cohen’s broader ambition to expand GameStop’s market value more than tenfold, building on its 1,700 percent stock surge during the 2021 meme-stock rally. Despite turnaround efforts, GameStop recently reported a 14 percent decline in fourth-quarter revenue, highlighting ongoing structural challenges in the gaming sector.
Meanwhile, eBay continues to show resilience, forecasting second-quarter revenue above Wall Street expectations, supported by growth in collectibles, motor accessories, and live-streamed auctions. Year-to-date, GameStop and eBay shares have risen 32.1 percent and 19.5 percent, respectively.
If successful, the deal would redefine the digital commerce landscape, combining GameStop’s physical retail footprint with eBay’s global marketplace to create a scaled competitor in a market increasingly dominated by platform giants.
