A bold takeover attempt by GameStop has sent shockwaves through the tech and retail sectors, after the company offered $55.5 billion to acquire eBay. The proposal values eBay at $125 per share, well above its last closing price in New York, and signals a high-stakes move to reshape the online marketplace industry.
GameStop’s chief executive, Ryan Cohen, believes the deal could unlock major growth. He argues that eBay, under new leadership, could challenge giants like Amazon. “eBay should be worth – and will be worth – a lot more money,” Cohen told the Wall Street Journal. “It could be a legit competitor to Amazon,” he added.
The offer combines cash and stock, backed by a reported $20 billion debt commitment from TD Securities. Cohen has also indicated he may bypass eBay’s board and appeal directly to shareholders if the proposal is rejected. For now, eBay says it will review the offer.
Market reaction has been mixed. eBay shares rose 5% following the news, while GameStop stock dropped more than 9%. Analysts remain cautious. Morgan Stanley flagged the companies’ “fundamentally different” business models. Meanwhile, Bernstein questioned whether GameStop has the financial strength to complete such a large deal.
GameStop rose to fame during the pandemic-driven meme stock surge, when retail investors pushed its shares to extreme highs. Since then, the company has worked to stabilize its business. It reported net profits of $418.4 million in 2025, a sharp increase from the previous year, though sales continued to decline.
eBay, launched in 1995, once dominated online auctions and second-hand sales. Its reach has faded in recent years. The platform now reports 136 million users worldwide, down from 175 million in 2018, as competition from Amazon and others intensified.
Cohen’s strategy centers on cutting costs and expanding eBay’s reach. He plans to reduce expenses by $2 billion within a year, focusing heavily on sales and marketing. He also sees potential in using GameStop’s 1,600 U.S. stores to support eBay’s “live commerce” and logistics operations.
Critics remain unconvinced. Sucharita Kodali of Forrester warned the deal could burden eBay with significant debt. “The truth is, we are not necessarily putting two strong companies together,” she said. She added that while the merger might boost GameStop’s valuation, the long-term benefits for eBay are less clear.
The proposed takeover now enters a critical phase. Investors, analysts, and industry insiders will watch closely to see whether eBay’s leadership accepts the offer—or if Cohen takes his case directly to shareholders.
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