GameStop launches $55.5B offer for eBay; Cohen says he would lead

GameStop submitted a non-binding, unsolicited proposal to acquire eBay at $125 per share, valuing the online marketplace at about $55.5 billion in a 50% cash/50% stock structure. The filing disclosed that GameStop began building an economic stake in eBay in February and now holds roughly 5% of the company.

In a letter to eBay’s board, GameStop CEO Ryan Cohen said he would lead the combined company and proposed immediate cost reductions that could deliver roughly $2 billion in annualized savings within a year of closing. GameStop said it has about $9.4 billion in cash and liquid assets as of January 31, 2026, and pointed to a “highly confident” commitment letter from TD Securities for up to $20 billion of debt financing, though the debt portion has not been finalized. The Wall Street Journal and multiple outlets reported Cohen is prepared to take the offer directly to shareholders if the board does not engage.

Markets reacted with mixed sentiment: eBay shares jumped in pre-market trading but remained below the $125 offer level, signaling skepticism that such a deal—where a much smaller GameStop seeks to buy a larger e-commerce incumbent—will complete. GameStop’s stock showed downward pressure amid questions over dilution and execution risk. Commentators noted the disparity in scale between the firms’ revenues and earnings, and flagged the volatility of GameStop stock as a complicating factor for a stock-funded portion of the deal.

Strategically, Cohen frames the move as transforming eBay into a more formidable competitor to Amazon by leveraging GameStop’s physical footprint for authentication, fulfillment and live commerce, while pruning marketing and sales spend that the bidder deems ineffective. Observers warn the transaction would face intense scrutiny from advisers, potential lenders and regulators, and that third-party buyers or sovereign investors could surface in response. The mismatch in scale and the proposed leverage profile make regulatory and financing milestones critical.

Analysts expect near-term volatility and emphasize that the path forward depends on eBay’s board response, formal filings (Schedule 13D, HSR notifications) and the final structure of financing. If eBay resists, Cohen has signaled willingness to wage a proxy fight or pursue a hostile route, but many market participants view that outcome as uncertain given the financial and operational hurdles. Investors will watch official statements, regulatory filings and any third-party financing commitments closely in the coming weeks.