GameStop has already built a 5% stake in eBay and plans to finance the deal using its $9.4 billion cash reserves|Mike Mozart|CC BY 2.0
GameStop has made a $56 billion bid to acquire eBay Inc, offering $125 per share in a 50-50 cash-and-stock deal—about a 20% premium to Friday’s closing price.
The surprise offer, led by CEO Ryan Cohen, highlights GameStop’s push to become a stronger e-commerce player.
The announcement sent eBay shares up more than 13% in after-hours trading, while GameStop stock gained around 4%.
The videogame retailer has already built a 5% stake in eBay and plans to finance the deal using its $9.4 billion cash reserves, $20 billion in debt commitments, and potential external investors.
Cohen said he is ready to take the offer directly to shareholders if eBay’s board resists. He believes the merger could unlock higher growth, cut costs, and scale profits, especially in collectibles like trading cards.
Under the plan, Cohen would lead the combined company without salary or bonuses, earning only through stock performance. He targets $2 billion in cost cuts within a year and plans to use GameStop’s 1,600 US stores to boost eBay’s logistics and live commerce.
The move is ambitious, as eBay’s market value is nearly four times larger than GameStop’s. It is valued at about $46 billion and recently reported an 18% rise in gross merchandise volume.
The proposal drew mixed reactions. Analysts warned it could burden eBay with debt, though it may boost GameStop’s valuation.