GameStop bids $56 billion to acquire eBay in ambitious collectibles play

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5.5.2026

Quick Facts

GameStop offered $125 per eBay share, representing a 20% premium and $56 billion total value
The deal would combine GameStop’s 1,600 stores with eBay’s marketplace to compete with Amazon
eBay shares rose 5% while GameStop stock fell 10% as investors questioned deal feasibility

GameStop submitted a non-binding proposal to acquire eBay for $125 per share in cash and stock. The offer values eBay at approximately $55.5 billion, representing a 20% premium to Friday’s close.

The bid faces significant financing challenges. GameStop has a market value of $12 billion compared to eBay’s $46 billion. GameStop plans to fund the deal through its $9.4 billion cash pile, up to $20 billion in debt financing from TD Securities, and potential share issuances.

CEO Ryan Cohen sees the combination creating a serious Amazon competitor. “GameStop’s ~1,600 US locations give eBay a national network for authentication, intake, fulfillment, and live commerce,” Cohen said.

GameStop projects cutting $2 billion in annual costs within a year, targeting eBay’s $2.4 billion sales and marketing budget. The company estimates this would boost eBay’s earnings per share to $7.79 from $4.26 in the first year.

Market reaction was mixed. eBay shares climbed 5% to around $109, well below the $125 offer price, suggesting investor skepticism. GameStop stock declined more than 10% as investors worried about dilution from potential share issuances.

eBay’s board acknowledged receipt of the unsolicited offer. “The Board will review this proposal with a focus on the value to be delivered to eBay shareholders,” the company said in a statement.

Wall Street analysts expressed doubt about the deal’s strategic logic. Bernstein analyst Nikhil Devnani questioned disrupting eBay’s turnaround. “Why disrupt things? The turnaround is working,” he wrote.

Cohen built his reputation selling pet retailer Chewy to PetSmart for $3.35 billion in 2017. He joined GameStop’s board in January 2021 and owns 9% of the company. If the merger succeeds, Cohen would become CEO of the combined entity.

The proposal requires significant regulatory approval and eBay shareholder acceptance. GameStop has built a 5% economic stake in eBay through derivatives and beneficial ownership as it pursues the acquisition.