GameStop Wants to Buy eBay in a Historic $55.5 billion Deal

GameStop, the video game retailer that became a symbol of the 2021 stock market craze surrounding so-called “meme stocks,” has submitted a non-binding acquisition offer to acquire 100% of eBay. The proposal is valued at $55.5 billion, and calls for a payment of $125 per share of the e-commerce company, split equally between cash and GameStop common stock.

The deal, which is still in its preliminary stages, is notable both for its size and for the profile of the parties involved. GameStop already holds a 5% stake in eBay, acquired through derivatives and direct ownership of common stock, and is proposing an offer that represents a 20% premium over eBay’s latest closing price and a 46% premium over the price prior to the start of its position-building. The company has also announced that it will file the necessary documentation with U.S. regulators.

An Ambitious Move to Compete with Amazon

The driving force behind the deal is Ryan Cohen, GameStop’s chairman and CEO, who would lead the combined company if the acquisition goes through. Cohen argues that the merger would transform eBay into a much more aggressive competitor in the e-commerce space. In his statements, he has argued that the platform “could be a real competitor to Amazon” and added a phrase that sums up the ambition of the move: “This is a business that is under-earning and can make a lot more money.”

GameStop’s proposal is based primarily on cost-cutting and the use of its physical network. The company estimates that, over the twelve months following the acquisition, it could reduce eBay’s annualized costs by $2 billion. That figure would include $1.2 billion in sales and marketing, $300 million in product development, and another $500 million in general and administrative expenses.

GameStop also argues that its approximately 1,600 stores in the United States could serve as a nationwide network for eBay to authenticate, receive, distribute, and conduct live transactions. It is, in essence, a way to transform a structure that for years seemed like a liability into a potential logistics infrastructure for a much larger digital business.

The company claims to have approximately $9.4 billion in cash and liquid investments as of January 31, along with a strong commitment from TD Securities to provide up to an additional $20 billion in financing. According to the proposal, Cohen would not receive a salary or cash bonuses while leading the combined group, and his compensation would depend solely on the new company’s performance.

The Outlook for eBay

The offer also comes at a particularly sensitive time for eBay. The company remains one of the historic giants of e-commerce, but it has long since lost the central role it held in the early days of the commercial internet, displaced by Amazon’s dominance and the fragmentation of the secondhand market. Even so, its latest figures show a company far from terminal decline: in the first quarter of 2026, it generated $3.1 billion in revenue and handled $22.2 billion in gross merchandise volume, with 136 million active buyers worldwide. Its recent strategy involves strengthening categories where it retains a distinct identity, such as collectibles, fashion, auto parts, cards, toys, and live auctions, as well as introducing artificial intelligence tools to make it easier for sellers to post listings.

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eBay’s response will be crucial. The deal is not yet finalized, is not binding, and still faces potential opposition from the board, shareholders, and regulators. Cohen, however, has already hinted that he might take the battle directly to the shareholders if eBay’s board rejects the offer.

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