GameStop has put forward an unsolicited, non-binding proposal to buy e-commerce platform eBay in a cash-and-stock transaction valued at about $55.5bn, with an offer price of $125.00 per share.
Under the proposal, the consideration would be divided equally between cash and GameStop common stock.
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Shareholders would be given full election rights regarding their preferred form of payment, subject to pro-rata allocation in the event of oversubscription.
GameStop said the offer stands at a 46% premium to eBay’s closing price of $85.84 on 4 February 2026, which it identified as the date it started building its position.
It also said the proposal reflects premiums of 27% and 36% to the 30-day and 90-day volume-weighted average prices, respectively.
The company disclosed a 5% economic interest in eBay through derivatives and direct beneficial ownership.
To finance the cash portion of the proposed deal, GameStop said it plans to use its existing cash and liquid investments, which were around $9.4bn as of 31 January 2026, together with third-party financing.
It added that it has received a highly confident letter from TD Securities for up to $20bn.
GameStop said it has identified $2bn in annualised cost savings that it believes could be achieved within 12 months of closing.
It said these would target eBay’s sales and marketing spending of $1.2bn, product development costs of $300m, and general and administrative functions of $500m.
The company also referred to eBay’s $2.4bn sales and marketing spend in fiscal 2025, which it said resulted in a net increase from 134 million to 135 million.
Based on cost reductions alone, GameStop said eBay’s diluted earnings per share from continuing operations would rise from $4.26 to $7.79 in the first year after completion.
Ryan Cohen, who has led GameStop since January 2021 and owns about 9% of the company, would become chief executive of the combined business if the transaction closes.
GameStop said Cohen receives no salary, cash bonuses, or severance arrangements.
GameStop also cited its financial performance under Cohen, stating that it moved from a net loss of $381m in fiscal 2021 to net income of $418m in fiscal 2025.
In addition, the company said its roughly 1,600 US retail sites could function as a nationwide network for authentication, intake, fulfilment, and live commerce for eBay.
The proposal is subject to customary closing conditions.
