GameStop has launched a surprising $55.5bn cash-and-stock bid to acquire eBay, valuing the e-commerce platform at 125 dollars per share, around 20 dollars above its previous closing price. Led by chief executive Ryan Cohen, the proposal envisions transforming eBay into “a legit competitor to Amazon” by combining GameStop’s retail footprint with eBay’s online marketplace and brand recognition. Cohen has indicated a willingness to bypass eBay’s board and take the offer directly to shareholders if necessary, while eBay has stated it will consider the proposal amid significant scepticism from analysts.
Firms such as Morgan Stanley argue that the companies have “fundamentally different” business models, and Bernstein notes GameStop’s much smaller balance sheet, expressing doubt that the deal will ultimately proceed. The offer comes after GameStop’s reinvention following the pandemic-era meme stock frenzy, when retail investors massively bought shares in companies targeted by short sellers, causing wild price swings.
Under Cohen’s leadership since 2023, GameStop has achieved a net profit of 418.4 million dollars in 2025, up from 131.3 million the year before, even as overall sales declined and the company continues to operate around 1,600 US stores. eBay, launched in 1995 and now worth roughly four times more than GameStop, still enjoys “near-universal brand recognition” but has seen its user base drop from 175 million in 2018 to 136 million amid fierce competition from platforms like Amazon.
Cohen’s plan involves cutting about 2 billion dollars in costs at eBay within a year, mainly in sales and marketing, arguing that these expenses have failed to attract enough new users. The deal would also rely on approximately 20 billion dollars in debt financing from TD Securities, and would leave Cohen running the combined company without salary or bonuses, being “compensated solely based on the performance of the combined company”. Critics warn that the transaction could burden eBay with GameStop’s debt and does not necessarily unite two strong businesses, even though it could boost GameStop’s valuation through association with a larger firm. Market reaction has been mixed, with eBay’s shares rising about 5% while GameStop’s fell more than 9% after the announcement.
Reference
Chia, O., & Thomas, D. (2026, May 4). GameStop makes $55.5bn takeover offer for eBay. BBC News. https://www.bbc.com/news/articles/cn0p8yled1do