GameStop has made a surprising move by proposing to buy eBay for $125 per share in an unsolicited offer. The deal, valued at approximately $55.5 billion, involves a mix of cash and stock from the video game retailer. This bid represents a 46% premium over eBay’s stock price before GameStop started accumulating its position on February 4. Alongside the offer, GameStop revealed it owns a 5% economic stake in eBay through derivatives and common stock, and plans to file regulatory notifications.
If the acquisition goes through, Ryan Cohen, the chairman of GameStop, would become CEO of the combined entity. Cohen, who holds about 9% of GameStop’s shares, famously works without a salary, cash bonuses, or a golden parachute. The proposal is subject to financing, regulatory and shareholder approvals, and a final agreement.
A key part of the proposal is cost-cutting. GameStop claims it can save around $2 billion annually within a year of closing the deal, targeting areas like sales, marketing, product development, and administrative expenses. The company criticized eBay’s marketing spending, which reached $2.4 billion in fiscal 2025, arguing that higher spending isn’t translating into user growth.
To fund the cash portion, GameStop plans to use its own resources and outside financing. As of January 31, 2026, the company had about $9.4 billion in cash and liquid investments. Additionally, TD Securities has provided a highly confident letter for up to $20 billion in acquisition financing.
This bold move comes as GameStop continues to pivot away from its traditional retail business. The company has maintained exposure to 4,709 Bitcoin through a covered-call arrangement with Coinbase, rather than selling its crypto holdings. Earlier rumors indicated that Cohen was pursuing a major acquisition, describing the strategy as either genius or completely foolish. Now, eBay is the named target, solidifying GameStop’s transformation into a more diversified player.