GameStop has tabled a bold $55.5 billion unsolicited bid to buy eBay, in a move that could transform the video game retailer into a major e-commerce player.
Announced on Sunday, the cash-and-stock deal values eBay at $125 per share, a $20 premium over its New York close on Friday. GameStop CEO Ryan Cohen laid out the vision in a letter to eBay’s board, vowing “$2B of cost savings at the firm within a year of the deal being completed.”
The BBC has contacted eBay for comment but received no response so far. If approved, Cohen would helm the merged company, taking “no salary, no cash bonuses, and no golden parachute,” with pay tied solely to performance, GameStop said.
To fund the acquisition, GameStop, valued at $11.9 billion on the market, secured a $20 billion debt pledge from TD Securities. Much of the savings would come from trimming eBay’s sales and marketing budget by $1.2 billion, as recent spending hikes failed to grow its user base on what GameStop calls a “marketplace with near-universal brand recognition.”
The news sent eBay shares jumping more than 13% in after-hours trading Friday. eBay has faced headwinds, with 2025 revenue down 2% amid stiff rivalry from Amazon and TikTok in live shopping and luxury goods.
GameStop brings its network of 1,600 remaining U.S. stores, slimmed from thousands since 2019, to bolster eBay’s physical presence for “live commerce” initiatives. Cohen, who stepped in as CEO in 2023, has long criticised the chain’s slow digital shift.
This comes years after GameStop’s wild 2021 ride as a meme stock, propelled by Reddit influencer Keith Gill, or Roaring Kitty, alongside peers like AMC Entertainment and BlackBerry. Those frenzies saw retail investors upend hedge fund bets.
Reaction has been cautious. Wedbush analysts spot synergies in gaming collectibles, eBay’s strong suit, but Morningstar warns of debt strains at 4.5% U.S. interest rates. GameStop shares dipped 3% pre-market Monday, yet the pact could forge a $67 billion entity challenging online retail giants.