GameStop Makes $55.5 Billion Offer to Buy eBay

GameStop has made an unsolicited $55.5 billion offer to acquire eBay, the e-commerce marketplace founded in 1995. The bid values eBay at $125 per share—a 20% premium over its Friday closing price of $104—comprising 50% cash and 50% stock.

GameStop CEO Ryan Cohen, who would lead the combined company if the deal closes, told The Wall Street Journal that he wants to transform eBay into a “legit competitor to Amazon.” The acquisition aligns with GameStop’s strategic expansion beyond gaming and merchandise into collectibles, particularly Pokémon cards. GameStop already holds a 5% economic stake in eBay.

Funding for the acquisition would come from GameStop’s $9.4 billion in cash and liquid investments, supplemented by third-party financing including up to $20 billion in debt from TD Securities. In its announcement, GameStop outlined aggressive cost-cutting plans, promising $2 billion in annual cost reductions within twelve months of closing, including roughly $1.2 billion from sales and marketing.

eBay, with a market value of $46 billion, said it would “carefully review” the proposal, noting it had “no discussions with or outreach from GameStop” prior to receiving the bid. GameStop’s offer arrives unsolicited, and its feasibility drew skepticism during a CNBC interview where Cohen appeared defensive about how the company would finance the transaction.

GameStop Makes $55.5 Billion Offer to Buy eBay

Sources