Shares of eBay rose sharply in early trading on Monday after GameStop submitted a roughly $56 billion bid to acquire the online marketplace, aimed at expanding its e-commerce reach.
Grapevine-based GameStop, led by CEO Ryan Cohen, offered $125 per share in a combination of cash and stock, valuing eBay at about $55.5 billion. The company said it has already built a 5% stake in eBay after beginning to accumulate shares in February.
EBay confirmed it received the unsolicited proposal and said its board, along with financial and legal advisors, will review the offer. The company added that it had not been in prior discussions with GameStop before the bid was submitted.
Cohen described the acquisition as an opportunity to grow eBay’s position in online retail and compete more directly with larger platforms.
“EBay has the second largest commerce franchise and there’s a big opportunity to do something much larger,” Cohen said in a television interview on Monday, the Associated Press reported.
GameStop said it plans to use its approximately 1,600 U.S. stores as part of the combined company’s strategy, potentially turning them into locations for shipping, drop-offs, and live sales events featuring eBay products.
The retailer also outlined plans to cut costs, noting that eBay spent $2.4 billion on sales and marketing in fiscal 2025 while adding about 1 million net active buyers. GameStop said it expects to achieve $2 billion in annualized cost reductions within a year of completing the transaction.
Under the proposal, Cohen would serve as chief executive of the combined company and would be compensated based on performance.
Despite the surge in eBay’s stock, shares remained below the $125 offer price, reflecting some investor uncertainty about the deal. GameStop shares declined in early trading.
Analysts have raised questions about how the transaction would be financed, given the size of the bid compared to GameStop’s market value. The company said it plans to fund the cash portion using existing resources and up to $20 billion in debt financing.
The proposal marks another major move by GameStop as it continues to shift beyond its traditional video game retail business. The company gained widespread attention in 2021 during a surge in trading driven by individual investors, and its stock remains elevated compared to previous years.
The potential deal remains under review, and it is unclear whether eBay will engage further or pursue alternative options.
