GameStop Offers $55.5 Billion to Acquire eBay, Aiming to Create ‘Legit Competitor’ to Amazon
Reflecto News | Breaking News | Business & Finance
GRAPEVINE, Texas — GameStop, the video game retailer that became a household name during the 2021 meme stock craze, has made an unsolicited, non-binding offer to acquire e-commerce giant eBay for approximately $55.5 billion, in a move that CEO Ryan Cohen believes could create a “legit competitor” to Amazon .
The proposed acquisition values eBay at $125.00 per share, consisting of 50% cash and 50% GameStop common stock, with full shareholder election rights . The offer represents a 46% premium over eBay’s unaffected closing price on February 4, 2026 (when GameStop began building its position) and a 20% premium to eBay’s recent closing price .
The deal would mark a dramatic reversal of roles in M&A history, given that GameStop’s market value of approximately $12 billion is only about one-quarter of eBay’s $46 billion valuation .
“It could be a legit competitor to Amazon… I’m thinking about turning eBay into something worth hundreds of billions of dollars.” — Ryan Cohen, GameStop CEO
A ‘Meme Stock’ Makes a Power Move
GameStop, which was nearly bankrupt in 2020, has been transformed under Cohen’s leadership. Since taking over as CEO in January 2021, the company has moved from a $381 million net loss to $418 million in net income, reduced SG&A expenses by approximately $800 million (47%), retired its legacy debt, and raised $4.2 billion in long-term debt at 0% interest .
Cohen, who owns approximately 9% of GameStop, receives no salary, cash bonuses, or golden parachute—his compensation is tied solely to the performance of the combined company .
GameStop has already built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock, and plans to file a Schedule 13D and Hart-Scott-Rodino notification .
Financing and Synergy Plans
The cash portion of the proposed deal is expected to be funded through a combination of GameStop’s existing cash and liquid investments (approximately $9.4 billion as of January 31, 2026) and third-party financing . GameStop has received a highly confident letter from TD Securities for up to $20 billion in acquisition financing .
GameStop has identified $2 billion in annualized cost reductions it believes could be achieved within 12 months of closing :
| Cost Category | Target Reduction |
|---|---|
| Sales & Marketing | ~$1.2 billion |
| Product Development | ~$300 million |
| General & Administrative | ~$500 million |
The company noted that eBay spent $2.4 billion on sales and marketing in fiscal 2025 while adding only one million net active buyers (from 134 million to 135 million, a net increase of less than 0.75%) .
Beyond cost-cutting, GameStop argues that its approximately 1,600 U.S. retail locations would provide eBay with a national network for authentication, intake, fulfillment, and live commerce—services that could enhance eBay’s marketplace operations .
Market Reaction and Analyst Concerns
eBay shares rose approximately 13% in after-hours trading to around $118, though still below GameStop’s $125 bid—a spread that reflects market skepticism about whether the transaction will ultimately be completed .
The deal faces significant hurdles. It requires approval from eBay’s board, regulators, and shareholders of both companies . Analysts have raised questions about the strategic rationale, with Bernstein reportedly telling clients that eBay’s turnaround already appeared to be “working” and questioning the need for outside intervention .
Cohen has indicated he is prepared to pursue a proxy fight and take the offer directly to eBay shareholders if the board is unreceptive to the proposal .
A potential deal would be a complete reversal of the usual M&A playbook, as it’s rare for a public company to target another nearly four times its size. Such deals typically rely on heavy debt, stock issuance, or both—banking on future earnings of the combined company to justify the cost .
What Comes Next
eBay’s board has not yet publicly responded to the proposal, and neither TD Bank nor eBay immediately responded to requests for comment .
If the deal proceeds, Cohen would serve as CEO of the combined company. Whether eBay’s board engages with the proposal or forces Cohen to take his case directly to shareholders will determine the next phase of this potential blockbuster acquisition.
Key Takeaways for Reflecto News Readers
| Aspect | Summary |
|---|---|
| Deal Value | Approximately $55.5 billion (undiluted equity value) |
| Offer Price | $125.00 per share (50% cash, 50% GameStop stock) |
| Premium | 46% premium to eBay’s unaffected Feb. 4 close; 20% to recent closing price |
| GameStop Stake | 5% economic interest through derivatives and common stock |
| Financing | ~$9.4B cash + $20B debt commitment from TD Securities |
| Cost Savings | $2B annualized within 12 months |
| Market Reaction | eBay shares up ~13% to $118; GME down ~3.66% |
| Cohen’s Role | Would serve as CEO of combined company, no salary/bonus |
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