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U.S. video game retailer GameStop has made a $55.5 billion offer to purchase e-commerce juggernaut, eBay.
The offer values eBay at $125.00 per share, comprising 50 percent cash and 50 percent GameStop common stock.
GameStop said its offer values eBay at a 46 percent premium on the company’s unaffected closing price on February 4, 2026—the day GameStop began accumulating its stake in the company.
GameStop said it will leverage $20 billion in debt financing from TD Securities to facilitate the transaction. The retailer has already acquired a 5 percent economic stake in eBay.
The non-binding proposal already has the support of the GameStop board.
In a note to investors, eBay confirmed receipt of the offer and said it will now “carefully review and consider” the proposal to determine whether it is in the best interests of shareholders.
GameStop CEO Ryan Cohen said he will lead the combined company if the takeover moves ahead, and explained he will be compensated solely based on performance. “I will receive no salary, no cash bonuses, and no golden parachute,” he added in a letter to eBay chairman of the board, Paul Pressler.
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Cohen claims eBay is spending more on sales and marketing without actually attracting users. As such, he said GameStop would deliver $2 billion of annualized cost reductions within 12 months of closing the transaction. He also claims GameStop’s numerous brick-and-mortar locations in the United States will bolster eBay’s business.
“We will take $2 billion of annualized costs out within twelve months of close: $1.2 billion from Sales & Marketing, $300 million from Product Development, and $500 million from General & Administrative,” said Cohen.
“[…] On cost reductions alone, eBay’s diluted GAAP earnings per share from continuing operations would increase from $4.26 to $7.79 in year one. GameStop’s ~1,600 US locations give eBay a national network for authentication, intake, fulfillment, and live commerce.”
About the Author
Senior Editor, News, GameDeveloper.com
Game Developer news editor Chris Kerr is an award-winning reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton.
