GameStop Corp (NYSE:GME) has made an unsolicited, non-binding proposal to acquire eBay Inc (NASDAQ:EBAY, XETRA:EBA) in a deal valuing the online marketplace at approximately $55.5 billion.
The offer proposes $125 per share in a mix of 50% cash and 50% GameStop common stock, with shareholders given the option to elect their preferred form of consideration, subject to pro-rata allocation.
The bid represents a 46% premium to eBay’s unaffected closing price on February 4, 2026, the day GameStop began accumulating its position in the company, according to the proposal. GameStop said it has built a roughly 5% economic stake in eBay through a combination of derivatives and direct share ownership.
Based on eBay’s most recently disclosed share count, the transaction implies a 27% premium to the company’s 30-day volume-weighted average price and a 36% premium to its 90-day VWAP, GameStop said.
The company outlined a financing plan that includes approximately $9.4 billion in cash and liquid investments on its balance sheet as of January 31, 2026, along with up to $20 billion in potential acquisition financing, for which GameStop said it has received a “highly-confident” letter from TD Securities.
GameStop also detailed a series of projected cost synergies it estimates could total $2 billion annually within 12 months of closing. These include $1.2 billion in reductions to sales and marketing expenses, $300 million from product development, and $500 million from general and administrative costs. The company argued that lower marketing spending could be achieved given what it described as eBay’s already broad brand recognition.
On the basis of those projected cost savings alone, GameStop said it expects eBay’s diluted GAAP earnings per share from continuing operations could rise from $4.26 to $7.79 in the first year following completion.
Beyond cost reductions, GameStop highlighted its approximately 1,600 US retail locations as a potential asset for eBay, suggesting they could be used for product authentication, intake, fulfillment, and live commerce operations.
GameStop said that if the transaction is completed, Ryan Cohen, currently chairman and CEO of GameStop, would become CEO of the combined company. Cohen has led GameStop since 2021, a period during which the company reported a shift from a $381 million net loss in fiscal 2021 to $418 million in net income in fiscal 2025, according to the company's proposal.
Shares of GameStop fell more than 8% on the announcement to about $24, while eBay shares added almost 6% at $110.