GameStop makes $55.5bn takeover offer for eBay to challenge Amazon

GameStop Corp. on May 3, 2026 submitted a non‑binding proposal to acquire 100% of eBay Inc. at $125.00 per share in a combination of cash and GameStop common stock, valuing eBay’s undiluted equity at approximately $55.5 billion according to the company’s announcement.

Under the proposal shareholders would have full election rights as to the form of consideration; the package is structured as 50% cash and 50% GameStop stock. GameStop said it has built an economic stake of roughly 5% in eBay and will file a Schedule 13D and Hart‑Scott‑Rodino notification; the company plans to fund the cash portion from about $9.4 billion of cash and liquid investments on its balance sheet and third‑party acquisition financing, noting a highly‑confident financing letter from TD Securities for up to $20 billion.

Market reaction was swift: the Wall Street Journal report that preceded the formal proposal sent eBay shares sharply higher in after‑hours trading and the formal announcement sustained investor interest. Bloomberg noted eBay jumped roughly 15% in after‑hours trade on the initial report, while GameStop shares also moved higher as markets digested the audacious bid and the potential strategic rationale.

GameStop’s filing outlines expected synergies and cost reductions, including approximately $2 billion of annualized savings within 12 months—driven by cuts in sales and marketing, product development and general and administrative costs—and argues that GameStop’s retail footprint could serve as a physical network for authentication, intake and fulfillment. The proposal also states that Ryan Cohen would serve as CEO of the combined company should the transaction close.

The deal faces important hurdles: regulatory review under the HSR Act, negotiation of definitive agreements, financing execution and shareholder approvals. Analysts note that if eBay’s board is unreceptive Cohen may take the offer directly to eBay shareholders, which could spark a proxy or takeover battle. The market will closely watch regulatory filings, financing confirmations and any response from eBay management in the coming weeks.