GameStop Proposes eBay Acquisition at 46% Premium, Ryan Cohen to Lead Combined Firm

GameStop Corp. has launched an audacious bid to acquire eBay Inc., offering $125 per share in a cash-and-stock deal that would value the online marketplace at approximately $55.5 billion, according to a company statement.

The non-binding proposal marks one of the most aggressive moves yet by the video game retailer as it seeks to expand beyond its core business. The offer represents a 46 per cent premium to eBay’s unaffected closing price on February 4, 2026 — the day GameStop began building its position — and includes a 27 per cent premium to the 30-day volume-weighted average price and a 36 per cent premium to the 90-day average.

GameStop said it has already accumulated a 5 per cent economic stake in eBay through a combination of derivatives and common stock, signalling early intent behind the takeover push.

Under the proposed structure, the deal would be split evenly between cash and GameStop stock, with shareholders given flexibility to choose their preferred form of consideration, subject to proportional allocation.

The company plans to fund the cash portion using its existing liquidity — around $9.4 billion as of January 31, 2026 — along with external financing. It said it has secured a “highly confident” financing letter from TD Securities for up to $20 billion to support the transaction.

Beyond the headline valuation, GameStop is pitching a sweeping operational overhaul. It outlined plans to deliver $2 billion in annualised cost reductions within the first year of closing, including $1.2 billion from sales and marketing, $300 million from product development, and $500 million from general and administrative expenses.

The company said these efficiencies alone could lift eBay’s diluted GAAP earnings per share from $4.26 to $7.79 within the first year.

GameStop is also banking on operational synergies, pointing to its network of roughly 1,600 U.S. retail stores as a potential backbone for eBay’s logistics, including authentication, product intake, fulfilment and live commerce capabilities.

If completed, the combined entity would be led by GameStop Chairman Ryan Cohen as chief executive. Since taking over in 2021, Cohen has overseen a turnaround that moved GameStop from a $381 million net loss to a $418 million net profit in fiscal 2025, while cutting expenses sharply and eliminating legacy debt.

Cohen, who owns about 9 per cent of the company, does not draw a salary and is compensated based on performance.

The proposed acquisition remains subject to regulatory approvals and other customary conditions, and there is no certainty that a final deal will be reached.

(With inputs from ANI)