GameStop Makes $56 Billion Bid to Acquire eBay, Eyes Rivalry with Amazon

U.S. video game retailer GameStop has made an unsolicited, non-binding offer to acquire eBay in a deal valued at approximately $55.5 billion, marking a bold attempt to reshape the e-commerce landscape and challenge Amazon.

GameStop said it is offering $125 per share in a mix of cash and stock, representing a 20 per cent premium to eBay’s closing price on Friday and a 46 per cent premium compared to its February valuation, when the company began building a stake in eBay.

Following the announcement, eBay shares rose sharply by more than 13 per cent in after-hours trading, while GameStop shares gained around 4 per cent.

GameStop Chief Executive Ryan Cohen said the company aims to transform eBay into a significantly larger competitor in the global e-commerce market.

“eBay should be worth and will be worth a lot more money,” Cohen said, adding that he sees potential to build the platform into a business valued in the hundreds of billions of dollars.

Financing and Deal Structure

GameStop has already built an estimated 5 per cent stake in eBay and secured a commitment from TD Bank for up to $20 billion in debt financing to support the acquisition. The remaining portion of the deal is expected to be funded through its existing cash reserves of approximately $9.4 billion.

The proposal remains subject to approval from eBay’s board of directors, regulators, and shareholders of both companies. eBay has not yet issued an official response to the offer.

Concerns Over Deal Feasibility

The bid has raised questions among analysts due to the size difference between the two companies. GameStop’s market valuation stood at around $12 billion, while eBay’s valuation was significantly higher at approximately $46 billion prior to the announcement.

Both companies have faced challenges adapting to changing consumer behavior in recent years, which adds further uncertainty over the potential deal.

Ryan Cohen indicated that he may take the proposal directly to shareholders through a proxy fight if necessary.

Cost-Cutting and Growth Plans

As part of its proposal, GameStop said it plans to reduce $2 billion in annual costs, focusing on eBay’s sales and marketing expenses, which reached $2.4 billion in 2025.

The company also projected that these cost reductions could increase eBay’s earnings per share from $4.26 to $7.79 within the first year.

GameStop further outlined plans to use its network of 1,600 U.S. retail stores to support eBay’s operations, including product authentication, logistics, and live commerce services.

Strategic Ambition

The proposed acquisition reflects GameStop’s broader strategy to expand beyond its core gaming business and establish a stronger presence in e-commerce.

Cohen had earlier indicated plans to pursue a transformational deal involving a larger consumer-focused company, describing it as an unprecedented move in capital markets.

If completed, the deal could significantly reshape competition in the global e-commerce sector, positioning the combined entity as a stronger challenger to Amazon.