GameStop Makes Unsolicited $55.5 Billion Bid to Acquire eBay

Alexa Alix Last Updated: May 5, 2026 3 minutes read GameStop CEO Ryan Cohen submitted an unsolicited, non-binding proposal on May 3 to acquire 100% of eBay's common stock at $125 per share, valuing the marketplace at approximately $55. 5 billion.

The proposal represents a 46% premium to eBay's closing price on February 4, the day GameStop began quietly building a 5% economic stake in the company through derivatives and direct stock ownership. eBay confirmed receiving the proposal on May 4 and said its board will review it with financial and legal advisors.

The company said it had no prior discussions with or outreach from GameStop before the proposal arrived. EBay advised shareholders to take no action at this time.

What GameStop Is Proposing The deal would be structured as 50% cash and 50% GameStop common stock, with eBay shareholders able to elect their preferred form of consideration subject to pro-rata allocation.

Cohen has committed to serving as CEO of the combined company with no salary, no cash bonuses, and no severance, compensated solely on the performance of the combined entity. GameStop's board unanimously supports the proposal. Cohen has said he will file a Schedule 13D and HSR notification to formalize the 5% stake.

The Funding Gap Nobody Has Answered The proposal's biggest problem is simple arithmetic. GameStop has disclosed financing for less than $30 billion of the required $55. 5 billion. The stated sources are approximately $9.

4 billion in cash and cash equivalents on GameStop's balance sheet, plus a highly confident letter from TD Securities for up to $20 billion in debt financing. That accounts for roughly $29. 4 billion. The remaining $26 billion or more has not been explained.

When pressed on CNBC by anchor Andrew Ross Sorkin on how GameStop would cover the full cost, Cohen said the company has “the ability to issue stock in order to get the deal done” and referred interviewers back to the press release. He did not provide a specific plan for bridging the gap.

Cohen also acknowledged there “will be some leverage on the balance sheet” to make the acquisition possible, without specifying the amount. The Scale Mismatch The numbers behind this proposal are striking. GameStop reported $3. 63 billion in net sales for its entire fiscal year 2025. eBay generated $3. 09 billion in a single quarter ending March 31, 2026.

eBay's gross merchandise value reached $22. 2 billion in Q1 2026 alone, with 135 million active buyers globally. GameStop operates roughly 1,600 retail locations and saw online sales decline 26% year over year in 2025. What Cohen Says the Combined Company Would Do Cohen's proposal argues that eBay is underperforming relative to its potential.

He cited eBay's 2025 sales and marketing spend of $2. 4 billion which added only one million net active buyers, growing the base from 134 million to 135 million. He promised $2 billion in annualized cost reductions within 12 months of closing, which he claims would push diluted GAAP earnings per share from $4. 26 to $7. 79 in year one.

GameStop's 1,600 US retail locations are positioned in the proposal as a physical network for eBay authentication, intake, fulfillment, and live commerce. Cohen told the Wall Street Journal he is “thinking about turning eBay into something worth hundreds of billions of dollars.”

He also warned that if eBay's board does not engage with the proposal, he will go directly to shareholders in a potential hostile takeover bid. What It Means for eBay Sellers For the over 18 million active sellers on eBay, a GameStop acquisition would represent a significant shift in platform direction.

Cohen's cost-cutting agenda targets primarily the sales and marketing budget, which funds the buyer acquisition and retention programs that drive demand for sellers' listings.

A $2 billion reduction in that spend, if executed, would likely reduce buyer traffic and active buyer growth before any offsetting benefits from the physical store network materialized. eBay itself has been on an upward trajectory.

The platform reported 17% revenue growth and 14% GMV growth year over year in Q1 2026, and recently agreed to acquire the Depop resale marketplace from Etsy for $1. 2 billion. Whether eBay's board views a debt-heavy takeover by a declining brick-and-mortar retailer as a credible offer that improves on that trajectory remains to be seen.

Alexa Alix Last Updated: May 5, 2026 3 minutes read