GameStop makes $55.5bn takeover offer for eBay

GameStop has made a surprise $55.5bn takeover offer for eBay, proposing a mix of cash and stock that values the e-commerce giant at $125 per share, a $20 premium to its Friday closing price [1]. Ryan Cohen, GameStop's chief executive, said he would take the bid directly to shareholders if eBay's board rejects it [1]. Under the proposed deal, Cohen would become CEO of the combined firm, receiving no salary or bonuses and being "compensated solely based on the performance of the combined company" [1]. He argued that "eBay should be worth - and will be worth - a lot more money" and that "it could be a legit competitor to Amazon" [1]. GameStop, with a market valuation of about $11.9bn, has secured a commitment from TD Securities for around $20bn in debt financing for the acquisition [1]. Cohen also plans to cut costs at eBay by $2bn within a year, targeting its sales and marketing division [1]. eBay said it will consider the proposal [1]. Analysts expressed skepticism, with Morgan Stanley citing "fundamentally different" business models and Bernstein noting GameStop's smaller balance sheet [1]. Forrester analyst Sucharita Kodali said the proposal does not sound like a "terribly good offer" as it would saddle eBay with GameStop's debt, adding, "The truth is, we are not necessarily putting two strong companies together" [1]. GameStop rose to prominence during the meme stock craze and has seen a turnaround under Cohen, with net profit rising to $418.4m in 2025 from $131.3m the previous year, despite falling sales [1]. eBay, launched in 1995, has seen its user base shrink to 136 million worldwide from 175 million in 2018 amid competition [1]. Following the news, eBay shares rose 5% while GameStop fell more than 9% [1].