GameStop targets eBay in $55.5B deal as Cohen takes aim

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GameStop targets eBay in $55.5B deal as Cohen takes aim

GameStop has submitted an unsolicited, non-binding proposal to acquire eBay for $125 per share. 

Summary

  • GameStop offered $125 per eBay share, valuing the unsolicited takeover proposal at about $55.5 billion.
  • Ryan Cohen would lead the combined company if GameStop’s cash-and-stock acquisition proposal for eBay succeeds.
  • GameStop says $2 billion in yearly cost cuts could come within twelve months of closing.

The potential agreement values eBay at approximately $55.5 billion. The offer would be split evenly between cash and GameStop stock. GameStop stated that this price is 46% higher than eBay’s closing price on February 4th, which was the date GameStop began acquiring shares.

GameStop revealed it owns a 5% financial stake in eBay through a combination of investments and stock ownership. They also announced plans to officially file a Schedule 13D and comply with the Hart-Scott-Rodino Act, which are requirements for significant shareholders.

After the merger is finalized, Ryan Cohen is planned to become the CEO of the new, combined company. GameStop has stated that Cohen currently owns around 9% of the company and won’t be receiving a salary, cash bonuses, or any special exit compensation.

Cost cuts form key part of takeover plan

GameStop estimates it could save around $2 billion each year by cutting costs within a year of shutting down. They plan to focus on reducing spending in areas like sales, marketing, creating new products, and general administrative costs.

After eBay reported spending $2.4 billion on sales and marketing in 2025, GameStop raised concerns about the effectiveness of that spending, stating that increased marketing wasn’t leading to more customers on the platform.

GameStop plans to pay for the deal using its existing cash and by securing additional financing. As of January 31, 2026, the company had approximately $9.4 billion in cash and investments.

TD Securities has offered a strong commitment letter for up to $20 billion to help fund the deal. However, the offer still depends on securing financing, receiving regulatory and shareholder approval, and reaching a final agreement.

Bitcoin strategy adds another market angle

GameStop is expanding beyond traditional retail, and recently chose to hold onto its Bitcoin instead of selling it. They currently hold 4,709 BTC through an arrangement with Coinbase Credit that allows them to earn rewards while still owning the cryptocurrency, as reported by Crypto.news.

In February, Crypto.news noted that Cohen was working on a significant purchase, calling his plan either brilliant or a complete risk. The recent eBay offer clarifies what that plan involved.

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2026-05-04 13:56