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 proposed deal values eBay at about $55.5 billion on an undiluted equity basis. Meanwhile, the offer would use 50% cash and 50% GameStop stock. GameStop said the price represents a 46% premium to eBay’s unaffected closing price on February 4, when it began building its position.
GameStop also disclosed a 5% economic stake in eBay through derivatives and common stock ownership. The company said it planned to file a Schedule 13D and Hart-Scott-Rodino notification.
The proposal would place Ryan Cohen as chief executive of the combined company after closing. GameStop said Cohen owns about 9% of the company and receives no salary, cash bonuses, or golden parachute.
Cost cuts form key part of takeover plan
GameStop said it could deliver about $2 billion in yearly cost cuts within twelve months of closing. It pointed to sales and marketing, product development, and administrative expenses as target areas.
The company questioned eBay’s marketing spend after eBay spent $2.4 billion on sales and marketing in fiscal 2025. GameStop said, “More spend is not producing more users” on a widely known marketplace.
Moreover, GameStop said it would fund the cash portion through balance sheet resources and outside financing. The company reported about $9.4 billion in cash and liquid investments as of January 31, 2026.
It also said TD Securities provided a highly confident letter for up to $20 billion in acquisition financing. Still, the proposal remains subject to financing, regulatory approval, shareholder approval, and a final agreement.
Bitcoin strategy adds another market angle
GameStop’s bid follows its wider shift beyond legacy retail. Crypto.news reported earlier that the company kept exposure to 4,709 BTC through a Coinbase Credit covered-call arrangement rather than selling the Bitcoin outright.
Crypto.news also reported in February that Cohen was pursuing a “major acquisition” and had described the approach as “genius or totally, totally foolish.” The eBay proposal now gives that strategy a named target.
