GameStop has submitted a non-binding proposal to acquire 100% of eBay Inc. at $125.00 per share in a combination of cash and stock, valuing the e-commerce giant at approximately $55.5 billion on an undiluted basis. The offer represents a 46% premium to eBay’s unaffected closing price on February 4, 2026, the day GameStop began accumulating its position in the company. GameStop has since built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock, and is filing a Schedule 13D and HSR notification concurrently with the proposal.
The deal structure calls for equal splits of cash and GameStop common stock, with full shareholder election rights and a pro rata allocation. The cash portion would be funded through GameStop’s $9.4 billion in cash and liquid investments as of January 31, 2026, supplemented by up to $20 billion in third-party acquisition financing, for which GameStop has received a highly confident letter from TD Securities. The offer also represents a 27% premium to eBay’s 30-day VWAP and a 36% premium to its 90-day VWAP.
Central to GameStop’s strategic rationale is an aggressive cost-reduction plan targeting $2 billion in annualized savings within 12 months of closing. The company argues eBay spent $2.4 billion on Sales and Marketing in fiscal 2025 while adding just one million net active buyers — less than a 0.75% increase — and proposes cutting approximately $1.2 billion from that budget alone. An additional $300 million in savings would come from Product Development and $500 million from consolidating General and Administrative functions across the combined company. GameStop projects that on cost reductions alone, eBay’s diluted GAAP earnings per share from continuing operations would jump from $4.26 to $7.79 in year one.
Beyond the financial engineering, GameStop is pitching its roughly 1,600 U.S. retail locations as a physical infrastructure layer for eBay, offering capabilities in authentication, intake, fulfillment, and live commerce. Ryan Cohen, who has led GameStop since January 2021 and owns approximately 9% of the company, would serve as the combined entity’s chief executive officer. Under his tenure, GameStop reversed a $381 million net loss in fiscal 2021 to $418 million in net income in fiscal 2025, reduced SG&A by approximately $800 million, retired its legacy debt, and raised $4.2 billion in long-term debt at a 0% coupon. Cohen receives no salary, cash bonuses, or golden parachute.
