GameStop’s $56 Billion Bid to Acquire eBay Sends Shares Soaring

GameStop Corporation has proposed acquiring eBay Inc., the online auction giant, for $125 per share, totaling approximately $56 billion. The offer represents a 46% premium over eBay’s unaffected closing price on February 4, 2026, the day GameStop began accumulating its stake in eBay.

According to a press release from the video game retailer, GameStop has built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock.

Key Details of GameStop’s Proposal

Under the proposed deal, the acquisition would be structured as 50% cash and 50% GameStop stock. If accepted, Ryan Cohen, who became GameStop’s CEO in 2021, would remain as CEO of the combined company.

eBay’s Response to the Unsolicited Bid

On Monday morning, eBay confirmed receipt of the proposal, stating that it had no prior discussions or outreach from GameStop before receiving the offer. The company’s board of directors, in consultation with its financial and legal advisors, will carefully review and consider the unsolicited proposal to determine the best course of action for eBay and its shareholders.

Why This Bid Is Unusual

The surprise proposal stands out for two key reasons:

• The bid was unsolicited.
• eBay is significantly larger than GameStop. As of the end of the previous week, GameStop’s market capitalization was $11.9 billion, while eBay’s exceeded $46 billion.

Despite the size disparity, Ryan Cohen has made his ambitions clear. In a letter sent to eBay Chair Paul Pressler on Sunday, he outlined plans to cut costs, merge GameStop’s physical stores with eBay’s robust online presence, and create a company capable of competing with Amazon.

Cohen had previously hinted at such a move. In a January interview with CNBC, he stated that GameStop aimed to acquire a much larger public company to significantly boost its value. The bid for eBay fulfills that vision.

Cohen is also tying his compensation to the success of the new company. In his letter to Pressler, he wrote:

“Following close, I will serve as Chief Executive Officer of the combined company. I will receive no salary, no cash bonuses, and no golden parachute—I will be compensated solely based on the performance of the combined company.”

Market Reaction to the Proposal

On Monday, as markets opened, eBay’s shares (Nasdaq: EBAY) surged 6.58% to $110.92. However, this remains below GameStop’s offer price of $125 per share.

GameStop’s stock (NYSE: GME), which led the 2021 meme stock craze, fell 4.26% on Monday. Despite this dip, the stock has climbed 23% year to date.