GameStop submits $55bn bid to acquire eBay

• A 46% premium offer signals an aggressive expansion strategy.
• $2 billion cost-cut plan targets eBay’s spending inefficiencies.
• Minimal user growth despite $2.4 billion marketing spend.

GameStop has submitted a non-binding proposal to acquire eBay in a deal valuing the marketplace at approximately $55.5 billion. eBay is reviewing the proposal and has not yet entered negotiations.

The proposal would represent a major expansion of GameStop’s strategy. The company is offering $125 per share in a mix of cash and stock, representing a 46% premium to eBay’s unaffected share price on February 4th, 2026. 

The proposal also includes a 50% cash and 50% stock structure, with shareholder election options and pro-rata allocation.

Moreover, GameStop has already built a 5% economic stake in eBay through derivatives and common stock, and plans to file a Schedule 13D and HSR notification.

Cost cuts and operational overhaul

Alongside the bid, GameStop outlined plans to deliver $2bn in annualised cost reductions within twelve months of closing. The company said the cuts would primarily target sales and marketing, product development, and general administrative expenses.

The company argued that eBay’s recent spending has not translated into meaningful user growth, citing a $2.4bn marketing spend in fiscal 2025 that resulted in a net increase of just one million active buyers.

GameStop said the cost savings alone could lift eBay’s earnings per share from $4.26 to $7.79 in the first year.

If the deal were to go ahead, Ryan Cohen would serve as CEO of the combined entity. The deal is expected to be funded through existing cash reserves and up to $20bn in acquisition financing.