GameStop makes shocking takeover bid for eBay

GameStop has announced that it has made a $55.5 billion takeover bid for eBay, with an offer price of $125.00 per share. CEO Ryan Cohen, who would become CEO of the combined company if the deal goes through, said he wants to turn eBay into a "legitimate competitor to Amazon." The move is part of an effort to expand the company beyond games and merchandise, with the ambition of generating a $35 billion payout.

Financial details of the offer

The cash portion of the bid is set to be financed through a combination of cash and liquid assets from GameStop's balance sheet, which stood at $9.4 billion on January 31, 2026. In addition, up to $20 billion in debt financing from TD Securities is being considered. GameStop aims to achieve $2 billion in annual cost savings within 12 months of the deal closing.

Strategy and future plans

GameStop's strategic initiative would see its 1,600 U.S. retail locations used to give eBay a nationwide network for authentication, intake, fulfillment, and live commerce. Cohen also suggested that eBay should host more livestreams to sell items. "It can become a legitimate competitor to Amazon," he said.

Company history and recent developments

GameStop has had a turbulent history as a retailer in the gaming sector. GameStop's market value currently stands at around $12 billion, compared with eBay's market value of about $46 billion. Cohen has previously justified the move by saying he wants to reshape the company into a more valuable business. That includes turning GameStop stores into collection and authentication points for items sold by eBay sellers.

However, in recent years GameStop has faced significant challenges, including store closures and declining revenue. For the fiscal year ended January 31, 2026, GameStop reported net sales of $3.630 billion, down from $3.823 billion in 2024. Operating profit also fell to $232.1 million, compared with an operating loss of $26.2 million in fiscal 2024.

Cohen, who is GameStop's largest individual shareholder with more than 9% of the stock, has said he is absolutely convinced he is the right person to lead eBay. "There is nobody who, based on my experience, is better qualified to run the eBay business," he said. If the acquisition does not go through, however, Cohen has said he will go directly to shareholders.

The deal also includes ambitious goals for both GameStop and eBay, and it remains unclear whether eBay itself is open to a takeover. In the meantime, shareholders of both companies will need to closely follow how this situation develops.

In earlier comments, Cohen also stressed that eBay does not generate enough profit for what it spends, and that substantial cost cuts are needed to secure the platform's future. He said the company could generate significantly more value under his leadership.

With this dynamic and uncertain situation, shareholders face crucial moments ahead. GameStop appears determined to keep exploring the path to recovery and growth, while trying to capture a larger share of the online market with this bold move.