GameStop offers $55.5B for eBay at $125, would name Cohen CEO

GameStop submitted a non-binding $55.5 billion proposal to acquire eBay at $125 per share. The offer is half cash and half GameStop stock and equals a 46% premium to eBay’s February 4, 2026 closing price, when GameStop began building a position in the company.

The filing shows GameStop already holds roughly a 5% economic stake in eBay through a mix of derivatives and direct share ownership. The company said it will file a Schedule 13D and a Hart-Scott-Rodino notification this week. Shareholders would be able to elect cash or GameStop common stock, and the transaction would be subject to customary closing conditions.

GameStop reported about $9.4 billion in cash and liquid investments, a figure that includes bitcoin holdings accumulated over the past year. TD Securities provided a highly confident letter of credit for up to $20 billion in third-party financing, according to the company. The offer values eBay at roughly a 27% premium to its 30-day volume-weighted average price and a 36% premium to its 90-day average.

The proposal targets $2 billion in annualized cost reductions to be realized within 12 months of closing. The plan allocates about $1.2 billion in cuts to sales and marketing, $300 million to product development and $500 million to general and administrative expenses. eBay spent $2.4 billion on sales and marketing in fiscal 2025 and added about one million net buyers that year. GameStop projects eBay’s diluted earnings per share could rise from $4.26 to $7.79 from the proposed cuts alone.

GameStop highlighted potential operational synergies using its roughly 1,600 U.S. retail locations to provide in-person services for the marketplace. Proposed services include item authentication, drop-off intake, shipping fulfillment and live shopping events tied to eBay listings. The filing also notes eBay’s earlier acquisition of NFT platform KnownOrigin in 2022 and the company’s later retreat from Web3 initiatives.

Ryan Cohen would serve as CEO of the combined company if the deal completes. Cohen owns about 9% of GameStop and does not take a salary or cash bonuses. Since becoming executive chairman in January 2021 and later CEO, GameStop reported a $381 million loss in fiscal 2021 and net income of $418 million in fiscal 2025. Under his leadership, GameStop has pursued crypto payment options, added bitcoin to its treasury and worked to reduce legacy debt.

The transaction would trigger antitrust review under the Hart-Scott-Rodino Act. Whether eBay’s board chooses to engage with the proposal will determine next steps. GameStop’s forthcoming filings and disclosures are expected to provide more detail on financing, governance arrangements and any adjustments to the offer.