In a move that has stunned both Wall Street and the tech industry, GameStop has made an unsolicited $55–56 billion bid to acquire eBay, signaling one of the most ambitious takeover attempts in recent corporate history. The proposed deal, valued at $125 per share, combines cash and stock and represents a significant premium over eBay’s recent trading price.

The offer reflects a roughly 20% premium to eBay’s last closing price and nearly a 46% premium compared to early February levels, when GameStop quietly began building its stake. The gaming retailer now holds approximately 5% of eBay and has secured up to $20 billion in debt financing from TD Bank, while planning to deploy an additional $9.4 billion from its own cash reserves to fund the transaction.

Markets reacted immediately. eBay shares surged more than 13% in after-hours trading following the announcement, though still trading below the offer price—an indication that investors remain cautious about the deal’s likelihood of closing. Meanwhile, GameStop shares rose around 4%, reflecting optimism mixed with skepticism over the scale and feasibility of the proposal.

At the center of this bold strategy is CEO Ryan Cohen, who is positioning the acquisition as a transformative step toward building a serious competitor to Amazon. Cohen believes eBay is significantly undervalued and has the potential to evolve into a company worth hundreds of billions of dollars with the right operational overhaul and strategic direction.

The ambition is clear: combine GameStop’s retail footprint and operational discipline with eBay’s global marketplace to create a hybrid commerce ecosystem. GameStop’s network of roughly 1,600 U.S. stores could be repurposed into logistics hubs supporting eBay’s operations, including product authentication, warehousing, fulfillment, and even live commerce experiences—areas where Amazon has built a dominant edge.

However, the proposed acquisition raises serious structural and financial questions. GameStop’s market capitalization stood at around $11–12 billion prior to the announcement, while eBay was valued at approximately $46 billion. This mismatch underscores the scale of the challenge, as GameStop attempts to acquire a company nearly four times its size.

Despite this, Cohen appears prepared to escalate the situation if necessary. He has indicated a willingness to take the offer directly to shareholders through a proxy battle should eBay’s board resist the proposal. If successful, Cohen is expected to lead the combined entity as CEO, further consolidating his control over the strategic direction of the business.

The rationale behind the deal also highlights operational inefficiencies within eBay. GameStop has identified an opportunity to cut up to $2 billion in annual costs, particularly targeting eBay’s $2.4 billion sales and marketing budget. Despite this heavy spending, eBay’s active buyer growth has stagnated at under 1% annually, suggesting diminishing returns on customer acquisition efforts.

By streamlining operations and reducing excess spending, GameStop projects a sharp improvement in profitability. The company estimates that eBay’s earnings per share could rise from $4.26 to $7.79 within the first year following the acquisition, driven largely by cost optimization rather than immediate revenue expansion.

This takeover attempt also comes at a time when both companies are navigating structural challenges. eBay has struggled to maintain momentum in a highly competitive e-commerce landscape, with gross merchandise volume declining from $100 billion in 2020 to approximately $79.6 billion in 2025. The platform has faced increasing pressure from Amazon as well as niche resale marketplaces that cater to specific product categories.

GameStop, on the other hand, has undergone a dramatic transformation since its meme stock surge in 2021. Once driven by retail investor hype, the company has since refocused on fundamentals under Cohen’s leadership. Through aggressive cost-cutting measures and store closures, GameStop has returned to profitability, building a substantial cash position that now enables it to pursue large-scale strategic moves.

Cohen’s track record adds another layer of intrigue. As the founder of Chewy, which was sold for $3.35 billion, he established himself as a visionary in e-commerce. His involvement in GameStop began in 2020, where he pushed for a digital transformation long before becoming CEO in 2023.

The proposed acquisition also aligns with his long-term incentive structure. Earlier this year, GameStop approved a compensation package tied to ambitious performance targets, including achieving a $100 billion market valuation. If these milestones are met, Cohen’s stock options could be worth over $35 billion, creating strong alignment between his strategy and shareholder value creation.

Still, significant hurdles remain. The deal requires approval from eBay’s board, regulatory authorities, and shareholders from both companies. Given the size, complexity, and unconventional nature of the bid, regulatory scrutiny is expected to be intense.

Ultimately, this takeover attempt represents more than just a corporate transaction—it signals a potential shift in the structure of the e-commerce industry. If successful, it could create a new kind of retail platform that blends physical infrastructure with digital marketplaces at scale.

Whether GameStop can realistically execute such a massive deal remains uncertain. But one thing is clear: this bid has already reshaped the conversation around what is possible in modern capital markets, and it places GameStop at the center of one of the most closely watched corporate battles in years.