GameStop has stunned markets again with a US$56-billion bid for eBay, setting up one of the most audacious takeover attempts in recent years and reviving questions about just how far the meme-stock generation can push corporate America. The GameStop eBay takeover bid was tabled on Sunday in a cash-and-stock proposal that, if successful, would tie together two very different retail stories: one built on gaming shops and retail investor hype, the other on one of the internet’s oldest and best-known marketplaces.
According to a letter sent to eBay’s board, GameStop CEO Ryan Cohen is offering $125 per share, split evenly between cash and stock. Based on eBay’s Friday closing price, that works out to a premium of roughly 20%. It is a bold opening move, but not one that appears designed to go quietly. Cohen has already signalled that if eBay’s directors are not receptive, he is willing to take the fight directly to shareholders.
That stance should surprise no one. Cohen, who has become one of the most recognisable figures in the retail-investing world, has built a reputation for big, disruptive bets and a willingness to challenge conventional market logic. His influence surged during the 2021 meme-stock frenzy, when GameStop became the symbol of a retail trading rebellion that sent its shares rocketing more than 1 700%. Since then, Cohen has kept pushing the company towards a more ambitious future, and this latest move suggests he sees a far bigger prize than simply stabilising GameStop.
The scale of the proposal is what makes it so striking. eBay’s market value is nearly four times that of GameStop, which means this is not a routine acquisition target situation. It is a smaller company making a run at a much larger one, a rare and risky move in global dealmaking. In most cases, transactions of this sort rely on heavy debt, fresh share issuance, or a complex mix of both — all underpinned by the expectation that the combined company can generate stronger earnings and greater scale.
Cohen appears to believe he has done enough groundwork to make that argument. He told the Wall Street Journal that he has already lined up financing commitments, including a $20-billion debt commitment from TD Bank, and may seek additional backing from outside investors, among them Middle Eastern sovereign wealth funds. He also said that if the deal were completed, he would serve as CEO of the combined company.
There is also a strategic case being made, not just a financial one. Cohen argued that bringing GameStop and eBay together could create a business with the scale and reach to challenge bigger rivals. In his view, the combination could generate serious cost savings, improve earnings and unlock a broader retail ecosystem. He even told the WSJ that the merged business could become a “legit competitor to Amazon”, a remark that underlines just how expansive his ambitions are.
GameStop eBay takeover bid could reshape retail and e-commerce
At the heart of the GameStop eBay takeover bid is Cohen’s claim that the company could strip $2-billion from eBay’s annualised costs within 12 months of closing. That would be a major uplift for profits and, in theory, share performance. He also says GameStop’s network of about 1 600 US stores could be used for authentication, intake, fulfilment and live commerce — functions that could help eBay strengthen its marketplace model.
That idea is more interesting than it might first appear. eBay has long relied on trust, especially in categories such as collectibles, second-hand goods and niche items where verifying authenticity matters. GameStop’s physical footprint could, in theory, give eBay a real-world layer that many digital platforms lack. It could also help support livestream shopping and other newer commerce formats that are growing in popularity.
Still, there is a long way between a headline-grabbing proposal and an actual transaction. eBay’s board is under no obligation to entertain the offer, and the deal would need to overcome the usual hurdles of valuation, financing, integration and regulatory scrutiny. When one company attempts to buy another that is almost four times its size, the execution risk rises sharply. Investors may be excited, but bankers and dealmakers will be asking harder questions about debt load, synergies and whether the promised efficiencies can truly be delivered.
Cohen is not backing away from the challenge. He told the WSJ he would be prepared to launch a proxy fight if eBay’s board resists the proposal. In other words, if the directors do not engage, he may go directly to shareholders to try to force the issue. That is classic activist territory, but on a scale far bigger than most market-watchers would have expected from GameStop.
The backdrop matters too. GameStop has spent years trying to reinvent itself after the pandemic accelerated the shift to digital gaming and online shopping. Once a familiar stop for console buyers and in-store gamers, the company was hit hard as consumers moved online and publishers leaned more heavily into downloads and digital storefronts. Cohen joined the board in January 2021 and later became chief executive, driving aggressive cost cuts that helped push the company back into profitability.
Even so, the pressure has not disappeared. GameStop reported a 14% drop in fourth-quarter revenue last month, a reminder that structural challenges remain. The company’s legacy retail model is still under strain, and the search for a bigger strategic reset has clearly not stopped. In that context, an eBay acquisition is not just a growth play — it is a statement that Cohen wants to build something much larger than a turnaround story.
eBay, meanwhile, is hardly a distressed asset. Founded in 1995 by entrepreneur Pierre Omidyar, the company has been around long enough to evolve from an internet curiosity into a major global marketplace. Last week, it forecast second-quarter revenue above Wall Street estimates, helped by demand for collectibles, motor accessories and live-streamed auctions. That suggests a business with momentum, even if it is not always the loudest name in tech.
Market reaction has been telling. At Friday’s close, GameStop was valued at nearly $12-billion, while eBay stood at about $46-billion. This year, both stocks have moved higher, with GameStop gaining 32.1% and eBay rising 19.5%. Those gains show there is already investor appetite around both names, even before any formal boardroom response.
What happens next will depend on whether eBay’s directors see strategic value in a deal that, on paper at least, looks improbable. For now, the GameStop eBay takeover bid has done what Cohen likely intended: it has forced the market to imagine a much bigger version of both companies, and it has reminded investors that in the age of meme stocks, no proposal is too wild to be taken seriously.