GameStop, the US video game retailer known for its 2021 short squeeze, has made an unsolicited offer to acquire eBay for over £40 billion ($55.5 billion). The move is aimed at transforming the struggling chain into a rival to Amazon.
Details of the Offer
GameStop CEO Ryan Cohen announced the offer on Sunday, proposing $125 per share in cash and stock, a premium of $20 over eBay's closing price on Friday. The total valuation is approximately $55.5 billion. Cohen plans to implement $2 billion in cost savings within a year, primarily through cuts in sales and marketing, which could lead to significant job losses.
Financing the Deal
GameStop has about $9 billion in cash and a commitment from TD Securities for $20 billion in debt financing. Cohen may also seek outside investors to cover the remainder. Despite being a much smaller company—GameStop is valued at around $12 billion compared to eBay's $46 billion—Cohen believes the acquisition is feasible.
Strategic Vision
Cohen argues that eBay is undervalued and could become a legitimate competitor to Amazon. He proposes using GameStop's 1,600 US stores for item collection and authentication, and criticizes eBay's lack of investment in live commerce. If the deal proceeds, Cohen would serve as CEO of both companies without salary or bonuses, compensated solely on performance.
Potential Challenges
eBay's board may reject the offer, but Cohen is prepared to take it directly to shareholders in a hostile takeover. GameStop already holds about a 5% stake. However, eBay's revenue grew 19% in the first quarter of 2026, suggesting the company is not in distress. Critics warn that saddling eBay with billions in debt could lead to its downfall, similar to concerns about EA's Saudi-funded buyout.
Industry Context
GameStop has closed many stores in Europe, Australia, and Canada as physical game sales decline. The 2021 short squeeze provided a financial lifeline, but the company's market cap remains modest. The bold bid echoes past acquisitions by smaller firms, but the risks are high.
GameCentral has contacted eBay for comment. This story is developing.
