GameStop has submitted a non-binding unsolicited proposal to acquire eBay for approximately 55.5 billion dollars at 125 dollars per share in a 50 percent cash and 50 percent stock deal.
The offer, announced on May 3, 2026, from GameStop headquarters in Grapevine, Texas, values the online marketplace at a roughly 20 percent premium to its most recent Friday closing price and a 46 percent premium to its February 4, 2026, price before GameStop began building its stake. GameStop has accumulated about a 5 percent economic interest in eBay through derivatives and common stock. The company plans to file a Schedule 13D and HSR notification to regulators. Ryan Cohen, GameStop’s chairman and chief executive, would lead the combined company if the transaction closes.
Financing for the cash portion relies on GameStop’s existing cash and liquid investments, which stood at roughly 9.4 billion dollars as of January 31, 2026, plus up to 20 billion dollars in debt under a commitment letter from TD Securities. Shareholders would receive full election rights between cash and stock consideration with pro-rata allocation. The proposal remains subject to customary closing conditions, and GameStop has indicated it stands ready to engage directly with eBay shareholders if the board does not respond favorably.
Cohen has described the potential merger as a path to build a legitimate competitor to Amazon by combining eBay’s global marketplace with GameStop’s more than 1,600 physical stores for authentication, fulfillment, and collectibles experiences. He has spoken of opportunities for significant cost reductions and profitability improvements at eBay while expanding into live commerce and other growth areas. In communications tied to the proposal, Cohen expressed confidence that the combined platform could reach a valuation in the hundreds of billions of dollars.
This move reflects Cohen’s long-term vision for GameStop beyond traditional video game retail. After steering the company through major operational shifts toward e-commerce and collectibles, he now pursues scale in broader online retail. The strategy carries substantial risks, including shareholder dilution from new stock issuance, integration challenges between two distinct corporate cultures, and regulatory scrutiny over a deal that would create a major player in e-commerce.
Market participants reacted swiftly. eBay shares rose more than 13 percent in after-hours trading following the announcement, while GameStop stock also posted gains. The bid has reignited conversations among retail investors about Cohen’s activist style. Whether eBay’s board engages constructively or prepares for a potential proxy contest will shape the next phase of this high-stakes proposal.
The full proposal letter is available on GameStop’s investor relations site. Details on regulatory filings will emerge in coming days through SEC submissions.
