GameStop launches $55.5B bid for eBay to create global omnichannel powerhouse
GameStop (NYSE:GME) has officially submitted a non-binding proposal to acquire 100% of eBay (NASDAQ:EBAY) for $125 per share in a cash-and-stock deal valued at approximately $55.5 billion.
The offer represents a 46% premium over eBay’s closing price on February 4, 2026—the date GameStop began building its strategic stake.
The "Grapevine-to-San Jose" move marks a massive escalation in Ryan Cohen's leadership of GameStop.
Having already accumulated a 5% economic stake in the e-commerce pioneer, GameStop intends to file a Schedule 13D and HSR notification tomorrow to formalize its position as a significant shareholder.
The $125 per share consideration is split 50% in cash and 50% in GameStop common stock.
GameStop plans to fund the cash portion using its robust balance sheet—which held $9.4 billion in cash and liquid investments as of January 31, 2026—and a $20 billion acquisition financing commitment from TD Securities.
A central pillar of the proposal is GameStop’s critique of eBay’s current spending efficiency.
Despite spending $2.4 billion on Sales & Marketing in 2025, eBay added only one million net active buyers.
GameStop has pledged to deliver $2 billion in annualized cost reductions within the first year.
GameStop estimates these reductions alone would nearly double eBay’s diluted GAAP earnings from $4.26 to $7.79 per share in year one.
Beyond the financials, the merger aims to leverage GameStop’s 1,600 U.S. retail locations to serve as a physical backbone for eBay.
Under the proposed model, GameStop stores would act as a national network for authentication, intake, fulfillment, and live commerce, providing the physical trust-layer that digital marketplaces often lack.
Following the close, Ryan Cohen is slated to serve as CEO of the combined company.
Cohen’s track record at GameStop—taking it from a $381 million loss in 2021 to a $418 million net profit in 2025 while slashing SG&A by 47%—is being presented as the blueprint for eBay’s revitalization.
Consistent with his current policy, Cohen will receive no salary or cash bonuses, aligning his compensation entirely with the combined company's performance.