GameStop Offers to Buy eBay in Massive $55.5 Bilion Bid to Rival Amazon
GameStop has made an unsolicited bid to acquire auction giant eBay for $125 per share, which is to be evenly split between cash and stock. The massive offer, valued at around $55.5 billion, represents a 46% premium over eBay's closing price on February 4, 2026, the same day GameStop started increasing its position in the auction site. GameStop, which isn't afraid to ruffle feathers on social media, currently holds a 5% stake in eBay.
In its proposal, GameStop is critical of eBay's business model, pointing out that it spent $2.4 billion on sales and marketing in fiscal 2025 while adding just one million net active buyers, bringing the total to 135 million. That is a net increase of less than 0.75%.
"More spend is not producing more users on a marketplace with near-universal brand recognition," GameStop states in its proposal to acquire eBay.
GameStop's proposal outlines how it plans to deliver $2 billion in annualized cost reductions to eBay in the first year, should the transaction be approved. The plan entails slashing the sales and marketing budget in half to $1.2 billion, along with cutting $300 million from product development and an additional half a billion dollars from general and administrative costs. GameStop is also familiar with selling on eBay, having sold a viral stapler for $250,000 on the platform last year.
"On cost reductions alone, eBay’s diluted GAAP earnings per share from continuing operations would increase from $4.26 to $7.79 in year one. Beyond cost, GameStop’s ~1,600 US retail locations give eBay a national network for authentication, intake, fulfillment, and live commerce," GameStop states in its proposal.
Therein lies the real reason for the surprise takeover bid. Slashing costs is one thing, but GameStop CEO Ryan Cohen sees this is a golden opportunity to turn eBay into a "legit competitor to Amazon," according to remarks he relayed to The Wall Street Journal.
His confidence stems from his past successes, including founding and serving as CEO of Chewy, which PetSmart acquired for $3.35 billion in 2017, and taking the reins at GameStop three years ago. During his tenure, GameStop has gone from posting a $381 million net loss in fiscal 2021 to a $418 million profit in fiscal in 2025.
GameStop's Board unanimously supports the takeover proposal. If it goes through, Cohen will serve as CEO of the combined company.
Top image source: eBay via b-roll video
