According to The Wall Street Journal, GameStop CEO Ryan Cohen offered $125 a share for eBay, with consideration split 50% cash and 50% GameStop stock. The bid is about 20% above eBay’s closing price on the previous trading day. Cohen said GameStop began buying eBay shares on Feb. 4 and now holds about 5%.
Cohen also signaled he could take his case directly to shareholders if eBay’s board rejects the proposal.
He argued that combining GameStop’s physical store network with eBay’s online marketplace could cut costs and improve profitability. He also cited both companies’ strength in collectibles such as trading cards as a source of potential synergy. Cohen said he would serve as CEO of the combined company and take no salary, receiving compensation tied to performance.
Financing remains a key hurdle. Reuters reported Cohen has secured a debt commitment letter for $20 billion from TD Bank. As of late January, GameStop had about $9 billion in cash, cash equivalents and marketable securities. That suggests additional funding, including from outside investors, would be needed to complete a $56 billion transaction.
The size gap is also significant. GameStop’s market capitalization is about $12 billion, far below eBay’s roughly $46 billion.
eBay’s improving results could further complicate the bid. The company recently reported first-quarter revenue of $3.089 billion and gross merchandise volume of $22.2 billion, with GMV up 18% from a year earlier. It also issued a second-quarter revenue outlook above market expectations, raising questions about whether shareholders will readily back a sale.
GameStop has improved profitability through restructuring, but growth in its core business remains weak. Fiscal 2025 fourth-quarter revenue was $1.104 billion, down from a year earlier. While its cash position has strengthened, analysts said the proposed deal is still too large for GameStop to shoulder on its own.
Some in the market view the offer as more than a takeover attempt, saying it reflects Cohen’s ambition to expand GameStop beyond video game retail into a major e-commerce platform. Others cautioned that without firm financing and shareholder support, the proposal could end up as little more than a statement of intent.
* This article has been translated by AI.
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