GameStop Proposes $56 Billion Acquisition of eBay

GameStop has submitted a proposal to acquire eBay for approximately $56 billion in cash and stock, offering $125 per share—a 20% premium over eBay's recent closing price. The gaming retailer plans to transform its 1,600 U.S. stores into drop-off and shipping locations, and to host live sales broadcasts featuring eBay products.

"eBay has the second largest commerce franchise and there's a big opportunity to do something much larger," said GameStop CEO Ryan Cohen.

eBay confirmed receipt of the unsolicited proposal and stated that its board, along with financial and legal advisors, will review the offer. GameStop disclosed that it began acquiring eBay shares in February and currently holds a 5% stake.

The company aims to achieve $2 billion in annual cost reductions within a year of the transaction's closing, citing eBay's $2.4 billion expenditure on sales and marketing in fiscal 2025, which resulted in only a 1 million net increase in active buyers. If the acquisition proceeds, Cohen, who owns about 9% of GameStop, would serve as CEO of the combined entity, with compensation tied to its performance.

Following the announcement, eBay's stock rose over 7% in premarket trading, while GameStop's shares declined nearly 3%.