GameStop has presented a non-binding offer of around $56 billion to acquire eBay, the famous online marketplace founded in 1995. The goal declared by GameStop CEO Ryan Cohen is to build a credible competitor to Amazon, radically transforming the profile of both companies.
The $125 per share offer
GameStop formalized the proposal with a letter addressed to eBay president Paul Pressler, offering $125 per share. This is a premium of approximately 20% compared to the closing price on Friday, May 2, when the stock was trading at $104.07.
The transaction is structured half in cash and half in GameStop common shares, for an overall valuation of approximately $55.5 billion, calculated on the latest number of outstanding shares communicated by the company.
To support the cash component, GameStop is banking on two pillars: its own liquidity of approximately 9.4 billion dollars as of January 31, 2026 and a letter of commitment from TD Bank for financing of up to 20 billion dollars. For the remaining part, according to rumors from the Wall Street Journal, Cohen could seek the support of external investors, including Middle Eastern sovereign funds.
Who is Ryan Cohen
The protagonist of the operation is Ryan Cohen, CEO and main shareholder of GameStop. According to the Wall Street Journal, the company already holds a 5% stake in eBay. He told the Wall Street Journal that eBay
it should be worth — and will be worth — much more (…) There is no one more qualified than me, based on my experience, to run the eBay business.
The GameStop CEO also said he was ready to address shareholders directly and start a proxy battle if the board of directors did not accept the proposal. In the letter sent to the company, Cohen indicated that he would assume the role of CEO of the new entity following the closing of the deal.
Shops and collectibles to challenge Amazon
The heart of the strategy is the integration between GameStop’s physical stores and eBay’s digital platform. Cohen sees the retailer’s network of stores as a ready-made infrastructure to collect, verify and authenticate the products offered for sale online. This is especially true in categories where the two companies naturally overlap, such as trading cards, collectibles, retro video games and any products tied to consumer nostalgia.
Added to this is the bet on live commerce. Cohen would like the platform to focus more heavily on live streaming sales, offering brands the ability to reach customers through real-time video. The ultimate goal, in his words, is to turn eBay into “a true competitor to Amazon.”
On the societal front, the transformation is already underway. In recent years it has chosen to focus on high-margin niches and invest in artificial intelligence to make the buying and selling experience more fluid.
Market reactions and analysts’ judgment
After the news, eBay shares rose to around $116, but remained well below the offered price of $125. A sign that investors are already discounting the difficulties of the operation. According to Bernstein analysts, “eBay’s turnaround is working, why destabilize it?”. Dan Ives, famous American tech analyst, explains that:
When a smaller company tries to acquire a much larger one, markets tend to question both the financing and the strategic rationale.
GameStop, in fact, remains a much smaller company than eBay: the former has a capitalization of around 12 billion dollars, while the latter is worth around 46 billion.
