GameStop Proposes $55.5 Billion Acquisition of eBay

GameStop has submitted a non-binding proposal to acquire eBay for $125 per share, totaling approximately $55.5 billion. The offer comprises 50% cash and 50% GameStop common stock, representing a 46% premium over eBay's closing price on February 4, 2026, when GameStop began accumulating its 5% stake in eBay.

GameStop CEO Ryan Cohen highlighted the potential synergies between the companies, stating that GameStop's 1,600 U.S. retail locations could serve as a national network for authentication, intake, fulfillment, and live commerce.

To finance the acquisition, GameStop plans to use its $9.4 billion in cash and liquid investments, along with up to $20 billion in debt financing from TD Securities.

The proposal includes plans to achieve $2 billion in annual cost reductions within twelve months of closing, primarily by reducing eBay's sales and marketing expenses by $1.2 billion, product development by $300 million, and general and administrative costs by $500 million.

eBay has confirmed receipt of the unsolicited proposal and stated that its board will review the offer with a focus on the value to be delivered to eBay shareholders, including the value of the GameStop stock consideration and the ability of GameStop to deliver a binding, actionable proposal.

Market analysts have expressed skepticism regarding the feasibility of the transaction, noting the significant disparity in market capitalization between the two companies and questioning the potential synergies between their fundamentally different business models.

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