GameStop Proposes $55.5 Billion eBay Acquisition
GameStop has unveiled a non-binding $55.5 billion proposal to accumulate eBay at $125 per share, a 46% premium over eBay’s February 4, 2026, closing worth.
The offer combines money and inventory in equal quantities and would set up Ryan Cohen as Chief Executive Officer of the mixed retailer. GameStop has already gathered a 5% financial stake in eBay by derivatives and direct inventory possession.
The $125 Premium Behind the GameStop Offer
The Texas-based retailer plans to file a Schedule 13D and Hart-Scott-Rodino notification this week. The 46% premium tracks to February 4, when GameStop quietly started constructing its eBay stock position.
GameStop holds roughly $9.4 billion in money and liquid investments. That determine contains its Bitcoin reserves gathered over the previous yr. TD Securities issued a extremely assured letter of credit score for as much as $20 billion in third-party financing.
The supply values eBay (EBAY) at a 27% premium to its 30-day VWAP and a 36% premium to its 90-day common. Shareholders would have the best to elect between money and GameStop widespread inventory. The transaction is conditioned on customary closing situations.
Where Cohen Wants to Cut
The proposal targets $2 billion in annualized price reductions inside twelve months of closing. Roughly $1.2 billion would come from gross sales and advertising. eBay spent $2.4 billion in fiscal 2025, but added just one million internet consumers.
Another $300 million would come from product growth and $500 million from common and administrative bills. GameStop tasks that eBay’s diluted earnings per share may rise from $4.26 to $7.79 solely from cuts.
GameStop’s roughly 1,600 US areas may function anchor factors for in-person providers for {the marketplace}. These embrace merchandise authentication, drop-off consumption, delivery achievement, and reside procuring occasions.
eBay beforehand absorbed NFT platform KnownOrigin in 2022 earlier than reversing course on Web3.
Cohen’s Track Record at GameStop
Cohen owns roughly 9% of GameStop and pulls no wage or money bonus. He has additionally rejected any golden parachute since taking on in January 2021. The retailer swung from a $381 million loss in fiscal 2021. Net revenue reached $418 million by fiscal 2025.
He has additionally floated crypto funds and Bitcoin treasury strikes whereas paying down legacy debt. The mixed firm would face antitrust evaluation beneath the Hart-Scott-Rodino Act.
Whether eBay’s board engages with the proposal will decide the deal’s destiny. The coming days may reveal if this turns into Cohen’s greatest swing but.
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