Source Credit : Portfolio Prints
U.S. video game retailer GameStop said Sunday it has made an unsolicited, non-binding offer to acquire eBay for $125 per share in a cash-and-stock transaction, valuing the online marketplace at roughly $55.5 billion.
The proposal—split evenly between cash and GameStop common stock—represents a 20% premium to eBay’s Friday close of $104.07 and a 46% premium to its Feb. 4 closing price, when GameStop began accumulating its stake.
Despite the headline premium, market reaction signaled skepticism. eBay shares rose as much as 13.4% in after-hours trading to around $118, still below the offer price, suggesting doubts over deal completion. GameStop shares climbed about 4% to $27.60.
GameStop Chief Executive Ryan Cohen framed the bid as a long-term transformation play, telling The Wall Street Journal he sees a path to position eBay as a far stronger competitor to Amazon. “eBay should be worth—and will be worth—a lot more money,” Cohen said, adding that he envisions the platform reaching a valuation in the hundreds of billions.
GameStop has built an approximately 5% stake in eBay and secured a commitment from TD Bank for up to $20 billion in debt financing. The remainder would be funded from its roughly $9.4 billion in cash.
The proposal requires approval from eBay’s board, regulators, and shareholders of both companies. eBay did not immediately comment.
The scale mismatch raises immediate questions. Prior to the announcement, GameStop’s market capitalization stood near $11–12 billion, compared with eBay’s roughly $46 billion, casting doubt on the feasibility of the bid. Cohen, however, indicated he is prepared to bypass the board and take the offer directly to shareholders through a proxy fight if necessary. He is expected to lead the combined entity as CEO should the deal close.
Strategically, the pitch hinges on aggressive cost restructuring and operational integration. GameStop said it could cut $2 billion in annual expenses within a year, targeting eBay’s $2.4 billion sales and marketing budget, which has failed to drive meaningful user growth. The company projects these cuts alone could lift eBay’s earnings per share to $7.79 from $4.26 in the first year.
GameStop also highlighted its roughly 1,600 U.S. stores as a potential physical backbone for eBay—supporting authentication, logistics, fulfillment, and live commerce—effectively blending digital marketplace scale with offline infrastructure.
Cohen’s personal incentives align with the ambition. His compensation package, revised earlier this year, is heavily tied to performance metrics including market capitalization and profitability, with stock options that could exceed $35 billion in value if GameStop reaches a $100 billion valuation.
The bid comes as both companies continue to grapple with shifting consumer behavior. eBay, once a dominant marketplace, has steadily lost ground to Amazon and newer niche resale platforms. After peaking at $100 billion in gross merchandise volume in 2020, its GMV declined to $79.6 billion in 2025, reflecting ongoing challenges in user retention and growth.
