In a move that has blindsided Wall Street, GameStop Corp. has officially offered to acquire eBay Inc. for $55.5 billion. The Grapevine, Texas-based video game retailer announced the proposal on Sunday, marking a massive attempt to transition from its brick-and-mortar roots into a global e-commerce powerhouse.
Under the terms of the deal, GameStop is offering $125 per share in a mix of cash and stock. This represents a significant premium for the California-based marketplace.
GameStop already holds a 5% stake in eBay, but this bid would see it take full control of a platform that has been a staple of online resale for decades.
To bankroll the ambitious takeover, GameStop CEO Ryan Cohen confirmed he has secured a $20 billion commitment from TD Securities. Cohen, who founded the pet supply giant Chewy before taking the helm at GameStop in 2023, is betting that eBay can be transformed to rival the industry’s biggest players.
“EBay should be worth — and will be worth — a lot more money,” Cohen told The Wall Street Journal. “I’m thinking about turning eBay into something worth hundreds of billions of dollars.” He added that with the right direction, the platform could become a “legit competitor to Amazon.”
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The response from eBay has been measured. In a statement released Monday, the company confirmed receipt of the unsolicited proposal and stated it would “carefully review and consider” the offer to determine the best path forward for its shareholders. However, Cohen has signaled he isn’t interested in a long negotiation, indicating to the Journal that he is prepared to launch a hostile bid if eBay’s board rejects the initial offer.
The move is striking given the size discrepancy between the two companies. GameStop currently has a market capitalization of roughly $12 billion, while eBay is valued at nearly $49 billion. GameStop’s recent history has been defined by its status as a “meme stock,” following a 2021 surge driven by retail investors on Reddit that saw share prices skyrocket by over 2,000%.
Market reaction on Monday morning was split. GameStop shares dipped about 2% to trade at $26, while eBay shares jumped 5%, climbing to $109.72 as investors weighed the likelihood of a deal. For now, the future of the e-commerce landscape sits in the hands of eBay’s board of directors.
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