GameStop Makes Unsolicited $56 Billion Bid to Acquire eBay

GameStop, the video game retailer with a market value of roughly $12 billion, has made an unsolicited offer to acquire eBay, the e-commerce platform worth nearly four times as much, at a price of $56 billion. The proposed deal aims to boost GameStop's profitability.

eBay confirmed that it received the offer on Monday and stated that there had been no prior discussions or contact between the two companies. The offer consists of half cash and half stock, including around $9 billion in cash and the assumption of $4.2 billion in debt.

Over the weekend, GameStop disclosed that it holds a 5% stake in eBay and announced a potential debt financing of up to $20 billion from TD Securities to persuade shareholders. CEO Ryan Cohen believes he can apply GameStop's cost-cutting strategy to enhance eBay's profitability, while leveraging GameStop's network of roughly 1,600 stores in the U.S. to help eBay better compete with Amazon.

“We have the capacity to issue stock to complete the deal,” Cohen said on CNBC. GameStop stated it aims to reduce costs at eBay, pointing out that eBay spent $2.4 billion on sales and marketing in fiscal year 2025 yet added only 1 million net buyers. GameStop claims it can cut $2 billion in annual expenses within a year of closing the deal.

Cohen, who owns about 9% of GameStop, would serve as CEO of the combined company and would only be compensated based on its performance. He became CEO of GameStop in 2023, when the company was struggling to survive as streaming reshapes the gaming industry. GameStop was one of the most famous meme stocks, sparking a frenzy among retail investors when its shares surged 1,000% in two weeks in 2021 driven by small-scale investors.

Morgan Stanley analysts suggest the market needs more details on the financing, and that the stock component could be a hard sell to investors, given the two companies' vastly different business models with little synergy. While eBay earns fees by connecting buyers and sellers online without holding inventory, GameStop is a traditional retailer that buys wholesale and sells through physical stores. The analysts also mentioned the possibility of a leveraged buyout, referencing a recent $55 billion deal from Electronic Arts.

eBay, once an Amazon rival, has refocused in recent years on antiques, rare sneakers, and luxury fashion rather than mainstream e-commerce. This shift has boosted sales and sent its shares up nearly 20% this year after a strong earnings report last week. Analysts say that even if the deal fails, it could still attract interest from other potential acquirers.

Cohen, who was at the center of the 2021 meme stock frenzy and previously built Chewy (the online pet supplies retailer), said he is prepared to take a hostile approach toward eBay. Acquiring eBay could help him achieve goals in the $35 billion compensation package GameStop announced in January, which includes pushing its market value to $100 billion.

However, investor Michael Burry, who once compared Cohen to Warren Buffett, dismissed the acquisition strategy as “very mediocre,” warning it would lead to more debt and stock dilution. He suspects the real goal is not to compete with Amazon but to dominate the collectibles and used-goods market. Burry said he might sell some or all of his holdings by the end of this week.

eBay shares rose 5.4% in midday trading, while GameStop shares fell 5.1% since market open.