GameStop launches $55.5 billion bid for eBay to rival Amazon

Video game retailer GameStop has made a surprise $55.5 billion bid to acquire e-commerce giant eBay, in a move that could reshape the global retail landscape.

The cash-and-stock offer values eBay at $125 per share — a $20 premium on its closing price at the end of trading in New York on May 1, GameStop said in a statement released on May 3, BBC writes.

GameStop chief executive Ryan Cohen signaled a willingness to bypass eBay’s board if necessary, saying he is prepared to take the offer directly to shareholders should the proposal be rejected.

In a letter to eBay, Cohen outlined plans to deliver $2 billion in cost savings within a year of completing the deal. 

GameStop rose to global prominence during the Covid-19 pandemic as the focal point of the “meme stock” phenomenon, when retail investors drove sharp swings in the share prices of companies that had been heavily shorted by institutional investors.

Despite maintaining around 1,600 stores across the United States, the company has undergone a partial turnaround under Cohen’s leadership. Net profit rose to $418.4 million in 2025, up from $131.3 million the previous year, although overall sales declined.

Founded in 1995, eBay became one of the most recognisable names in online commerce. However, its user base has contracted in recent years amid intensifying competition from rivals such as Amazon. The platform now has 136 million users worldwide, down from 175 million in 2018.

Under the proposed deal, Cohen would become chief executive of the combined company and receive no salary or bonuses, being “compensated solely based on the performance of the combined company”.

GameStop, which currently has a market valuation of about $11.9 billion, said it has secured a commitment letter from TD Securities to provide approximately $20 billion in debt financing to support the transaction.

A significant portion of the planned cost reductions would come from eBay’s sales and marketing operations. GameStop argued that these efforts have failed to expand the user base of what it described as a “marketplace with near-universal brand recognition”.

However, analysts have expressed skepticism about the proposal. Sucharita Kodali of Forrester said the offer “does not sound like a ‘terribly good offer’” as it would burden eBay with additional debt.

“It makes sense for GameStop because it could lift its valuation by being linked with a larger company like eBay,” she told the BBC. “The truth is, we are not necessarily putting two strong companies together.”

Investor reaction was swift. Shares in eBay jumped more than 13% in after-hours trading following news of the bid on May 1, while GameStop shares rose by around 4%.

Cohen argued that GameStop’s physical retail network could support eBay’s expansion into “live commerce” and other operational areas. Since becoming CEO in 2023, he has also been critical of GameStop’s slow transition toward e-commerce.

The proposed deal now hinges on whether eBay’s board — and potentially its shareholders — will back one of the most unexpected takeover attempts in recent years.

By Sabina Mammadli