- GameStop offered $55.5B for eBay in a cash-and-stock bid to expand beyond retail.
- Ryan Cohen says GameStop’s 1,600 stores could support eBay fulfillment and live commerce.
- eBay shares rose as GameStop fell, showing investor caution over financing and execution.
Video game retail company GameStop has made an unsolicited $55.5 billion offer for eBay, placing the meme-stock retailer at the center of a bold e-commerce takeover attempt. The bid values eBay at $125 per share, split between cash and stock.
The proposal comes as eBay works to refresh its marketplace against rising pressure from Amazon, Walmart, Shein, and Facebook Marketplace. GameStop said the deal could create a stronger online retail rival with physical-store support.
Cohen Pitches Store Network as eBay’s Growth Engine
GameStop CEO Ryan Cohen framed the offer around cost cuts, profitability, and a larger role for the retailer’s U.S. store network. In a letter to eBay’s chair, Cohen said combining both companies could lift diluted GAAP earnings per share from $4.26 to $7.79 in year one.
Cohen also pointed to GameStop’s roughly 1,600 U.S. locations as a possible network for authentication, intake, fulfillment, and live commerce. That pitch connects brick-and-mortar stores with eBay’s online marketplace.
The bid marks a sharp shift for GameStop, which became widely known during the 2021 meme-stock rally. Its core video game retail business has faced long-term pressure from digital downloads and changing consumer habits.
Cohen has pushed the company beyond its traditional retail model. The eBay proposal shows that the strategy is moving from internal restructuring into large-scale dealmaking.
GameStop’s $56B Bid Faces Size, Funding, and Execution Test
According to reports, the offer is unusual because GameStop is much smaller than eBay. FactSet data showed GameStop was worth $11.9 billion, while eBay’s market value stood at roughly $46.2 billion before the offer.
In its reports, GameStop said it plans to fund the cash portion using its balance sheet and outside financing. The company reported about $9.4 billion in cash and liquid investments as of January 31.
It also said TD Securities provided a highly confident letter for up to $20 billion in third-party acquisition financing. Cohen, on the other hand, has said he would serve as the combined company’s chief executive.
Meanwhile, eBay confirmed it received the unsolicited, non-binding proposal. The company acknowledged that there had been no discussions or outreach from GameStop before the offer arrived.
As a result, its board is reviewing the proposal with financial and legal advisers. eBay, however, told shareholders to take no action while that review continues. In the meantime, investors reacted cautiously after the bid became public.
eBay shares rose 4.71% to $108.79 in premarket trading, while GameStop fell 4.11% to $25.43. The market response reflected the scale of the proposed takeover. If completed, the deal would move GameStop from a meme-stock retailer toward a major e-commerce role beside Amazon.
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