GameStop has proposed a unilateral, non-binding $55.5 billion acquisition of eBay in a cash and stock deal as the video game retailer looks to move beyond its traditional retail business.
The company on Sunday submitted a non-binding offer to acquire 100% of eBay for $125 per share in cash and stock, according to a statement.
The offer includes a 46% premium over eBay’s unaffected closing price on February 4, 2026, when GameStop began building its position in the company. GameStop also disclosed that it has amassed an economic stake of approximately 5% in eBay through derivatives and common stock holdings.
The proposal comes as GameStop seeks to reposition itself beyond physical video game retail, including through its Bitcoin financial strategy approved in 2025. But the bid also raises financing and execution issues, as eBay’s market value is several times GameStop’s.
Potential cost savings and consolidation plans
GameStop has outlined that if the deal goes through, it expects to save about $2 billion a year in costs. The company said these savings will come from consolidating marketing, product development and management.
According to the company, eBay spent about $2.4 billion on sales and marketing alone in fiscal 2025, but only added 1 million net active buyers.
“More spending does not create more users in a marketplace with near-universal brand recognition,” GameStop added.
Source: GameStop
GameStop also pointed to the company’s retail footprint of approximately 1,600 U.S. stores as a potential asset for eBay’s logistics and authentication services. It suggests that these locations could be used to support product acceptance and fulfillment.
He also said the proposal would provide for GameStop’s CEO to serve as CEO of the combined company if the deal is successful.
“EBay should be worth much more – and it always will be – worth more,” Cohen said, according to the report, adding: “We’re looking at turning eBay into something worth hundreds of billions of dollars.”
According to TradingView, as of this writing, eBay has a market capitalization of $46.2 billion. GameStop’s market capitalization is approximately $12 billion.
eBay stock price, historical chart. Source: TradingView
GameStop has attracted attention for its increasing ties to the cryptocurrency market, especially after adding Bitcoin (BTC) to its 2025 corporate treasury strategy. The move puts the company alongside a small group of public companies that are experimenting with digital assets as part of balance sheet diversification.
The company also became a central figure in the meme stock frenzy of 2021. At this time, retail investors adjusted their buying activity, causing stock prices to skyrocket and causing extreme volatility.
