GameStop Launches $56 Billion Takeover Bid for eBay
GameStop submitted an unsolicited acquisition proposal to buy eBay for $125 per share (50% cash, 50% stock), valuing the e-commerce giant at roughly $56 billion. CEO Ryan Cohen said the deal would create a competitor to Amazon by combining GameStop's 1,600 retail stores with eBay's online marketplace.
GameStop's Bold eBay Acquisition
GameStop announced Sunday it has made an unsolicited, nonbinding offer to acquire eBay for $125 per share in a cash-and-stock deal, valuing the e-commerce platform at roughly $55.5 billion. The offer, split evenly between cash and GameStop common stock, represents a 20% premium to eBay's Friday close of $104.07, and a 46% premium to its closing price on Feb. 4 — when the gaming retail giant started building a stake in the company.
Financing and Strategy
GameStop, which built a roughly 5% stake in eBay, has secured an initial, non-binding "highly confident letter" from TD Bank to provide about $20 billion of debt financing for the deal. In its offer, GameStop said it would cut $2 billion in annual costs within a year, targeting eBay's bloated sales and marketing budget, which totaled $2.4 billion in fiscal 2025 while net active buyer growth remained flat at less than 0.75%.
Strategic Synergies
In a letter to the chair of eBay, GameStop CEO Ryan Cohen said the company would cut costs at eBay and make it more profitable. He also sees benefits in combining GameStop's brick-and-mortar stores with eBay's online presence. GameStop also pitched its roughly 1,600 U.S. retail stores as physical infrastructure for eBay's marketplace, offering a network for authentication, intake, fulfillment, and live commerce capabilities.