GameStop Proposes $55.5 Billion eBay Acquisition

GameStop has unveiled a non-binding $55.5 billion proposal to acquire eBay at $125 per share, a 46% premium over eBay’s February 4, 2026, closing price.

The offer combines cash and stock in equal amounts and would install Ryan Cohen as Chief Executive Officer of the combined retailer. GameStop has already accumulated a 5% economic stake in eBay through derivatives and direct stock ownership.

The $125 Premium Behind the GameStop Offer

The Texas-based retailer plans to file a Schedule 13D and Hart-Scott-Rodino notification this week. The 46% premium tracks to February 4, when GameStop quietly began building its eBay stock position.

GameStop holds roughly $9.4 billion in cash and liquid investments. That figure includes its Bitcoin reserves accumulated over the past year. TD Securities issued a highly confident letter of credit for up to $20 billion in third-party financing.

The offer values eBay (EBAY) at a 27% premium to its 30-day VWAP and a 36% premium to its 90-day average. Shareholders would have the right to elect between cash and GameStop common stock. The transaction is conditioned on customary closing conditions.

Where Cohen Wants to Cut

The proposal targets $2 billion in annualized cost reductions within twelve months of closing. Roughly $1.2 billion would come from sales and marketing. eBay spent $2.4 billion in fiscal 2025, yet added only one million net buyers.

Another $300 million would come from product development and $500 million from general and administrative expenses. GameStop projects that eBay’s diluted earnings per share could rise from $4.26 to $7.79 solely from cuts.

GameStop’s roughly 1,600 US locations could serve as anchor points for in-person services for the marketplace. These include item authentication, drop-off intake, shipping fulfillment, and live shopping events.

eBay previously absorbed NFT platform KnownOrigin in 2022 before reversing course on Web3.

Cohen’s Track Record at GameStop

Cohen owns roughly 9% of GameStop and pulls no salary or cash bonus. He has also rejected any golden parachute since taking over in January 2021. The retailer swung from a $381 million loss in fiscal 2021. Net income reached $418 million by fiscal 2025.

He has also floated crypto payments and Bitcoin treasury moves while paying down legacy debt. The combined company would face antitrust review under the Hart-Scott-Rodino Act.

Whether eBay’s board engages with the proposal will determine the deal’s fate. The coming days could reveal if this becomes Cohen’s biggest swing yet.

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