GameStop publicly announced a $55.5 billion unsolicited offer to acquire eBay on May 4. The offer values eBay shares at $125 each, with payment split 50-50 in cash and GameStop stock [1].
Ahead of making the bid, GameStop quietly acquired a 5% stake in eBay, signaling strong interest in a takeover [1].
The offer is backed by a $20 billion loan from TD Securities. GameStop CEO Ryan Cohen said he may seek additional funding from Middle Eastern sovereign wealth funds to complete the purchase [1].
GameStop had been valued at about $12 billion before the bid, far smaller than eBay’s $46 billion market valuation [1]. Cohen envisions combining GameStop’s existing assets with eBay’s business.
GameStop closed 590 retail stores in 2025 and still operates about 1,600 stores. Cohen plans to use these stores to support eBay logistics and live commerce initiatives [1].
Cohen pledged to launch a cost-cutting program at eBay if the deal succeeds, estimating potential annual savings of $2 billion [1]. He stated, "eBay should be worth – and will be worth – a lot more money" and said, "I’m thinking about turning eBay into something worth hundreds of billions of dollars". Cohen added, "It could be a legit competitor to Amazon" [1].
If eBay’s board rejects the offer, Cohen warned he will take the bid directly to shareholders and turn it hostile [1].
The next step will depend on eBay’s response to the offer and whether negotiations or shareholder actions occur.
