GameStop offers $55.5B for eBay at $125; Cohen proposed CEO
GameStop proposed a $55.5 billion, 50/50 cash-and-stock offer for eBay at $125 a share, disclosed about a 5% economic stake and named Ryan Cohen as proposed CEO.
GameStop proposed to acquire eBay for $55.5 billion, offering $125 per share in a deal split evenly between cash and GameStop stock. The retailer reported it holds roughly a 5% economic stake in eBay built through direct stock purchases and derivative contracts. The offer equals a 46% premium to eBay’s Feb. 4, 2026 closing price, a 27% premium to its 30-day VWAP and a 36% premium to its 90-day average.
The company said shareholders would be able to elect cash or GameStop common stock at closing. GameStop plans to file a Schedule 13D disclosing its stake and a Hart-Scott-Rodino notification this week. The proposal is subject to customary closing conditions and regulatory review.
GameStop reported about $9.4 billion in cash and liquid investments, a figure that includes Bitcoin holdings accumulated over the past year. The company also disclosed that TD Securities issued a letter of credit for up to $20 billion of potential third-party financing.
The proposal includes a plan to cut roughly $2 billion in annual costs within 12 months of closing. GameStop projects about $1.2 billion of the savings would come from lower sales and marketing spending, $300 million from reduced product development costs and $500 million from cuts to general and administrative expenses. Based on those estimates, GameStop projects eBay’s diluted earnings per share could rise from $4.26 to $7.79 from the cost reductions alone.
GameStop highlighted its roughly 1,600 U.S. retail locations as potential sites for in-person services for the marketplace, including item authentication, seller drop-off and intake, fulfillment and shipping services, and live shopping events. The filing referenced eBay’s earlier activity in digital asset experiments, including a prior acquisition and later reversal involving an NFT platform.
Ryan Cohen is the proposed chief executive of the combined company. He owns about 9% of GameStop, has not taken a salary or cash bonus since January 2021 and has rejected a golden parachute. Under his leadership, GameStop moved from a reported $381 million loss in fiscal 2021 to net income of $418 million in fiscal 2025; the company also explored Bitcoin treasury holdings and crypto payments and paid down legacy debt.
The transaction will require antitrust review under the Hart-Scott-Rodino Act. Whether eBay’s board chooses to engage with the proposal will determine next steps. GameStop’s disclosures set a timetable for public scrutiny and potential negotiation in the coming days.
