GameStop has made an unsolicited $55.5bn (£41bn) takeover offer for eBay, in a bold move that could turn hostile if the online marketplace rejects the proposal.
The US video games retailer, which became one of the most high-profile stocks during the 2021 meme-stock boom, has offered $125 per eBay share, split equally between cash and stock.
GameStop has also quietly built a five per cent stake in eBay, according to reports.
Chief executive Ryan Cohen, who has led GameStop since 2020, has claimed eBay could become a far more valuable business under his leadership and said he would launch a major cost-cutting programme if the deal goes ahead.
In a letter to eBay chair Paul Pressler, Cohen said he would look to cut $2bn of annual costs from the marketplace, including $1.2bn from sales and marketing, $300m from product development and $500m from administrative functions such as HR, legal support and IT.
Speaking to the Wall Street Journal, Cohen said: “Ebay should be worth – and will be worth – a lot more money.”
He also said he was considering turning the marketplace into a business worth “hundreds of billions of dollars”, adding that it could become “a legit competitor to Amazon”.
Cohen warned he could take the offer directly to eBay shareholders if its board is not receptive to the proposal.
The approach is significant given GameStop’s market value is far smaller than eBay’s. GameStop was valued at around $12bn before the bid, while eBay’s market capitalisation stood at roughly $46bn.
The offer is understood to be backed by a $20bn bank loan from TD Securities, while Cohen could also seek support from external investors, including Middle Eastern sovereign wealth funds.
GameStop has argued that its remaining store estate could support eBay’s next phase of growth. Although the retailer has closed hundreds of shops in recent years, including 590 in 2025, Cohen said its 1,600 remaining stores could be used as a national network for authentication, intake, fulfilment and live commerce.
The company said its stores could also act as drop-off and shipping hubs, as well as broadcasting spaces for livestreamed auctions.
GameStop said its staff already inspect and grade hardware and trading cards, which could support eBay sellers by enabling items to be verified in-store and listed with trust badges.
Cohen also criticised eBay’s spending, pointing to its $2.4bn sales and marketing budget in 2025, despite active buyers increasing by just 0.75 per cent on a net basis.
The bid comes shortly after eBay reported first-quarter revenue of $3.09bn, ahead of analyst expectations of $3.04bn. The marketplace has been investing in AI tools to improve communication between buyers and sellers, while demand for collectibles and livestreamed auctions is expected to support second-quarter sales.
eBay is also in the process of acquiring UK secondhand fashion resale app Depop from Etsy for around $1.2bn in cash.
Click here to sign up to Retail Gazette‘s free daily email newsletter
