GameStop has made a formal $55.5 billion offer to acquire eBay, according to a letter from CEO Ryan Cohen.
The proposal values eBay at $125 per share, paid through a mix of cash and GameStop stock, as the company looks to expand beyond its gaming roots.
Before making the bid, GameStop had already built a 5% stake in eBay.
The offer includes a 50/50 split between cash and stock and represents a premium over eBay’s recent trading price.
GameStop also outlined plans to cut around $2 billion in annual costs within the first year, targeting areas like marketing, development, and operations, which it says could improve profitability quickly after the deal.
Cohen highlighted the company’s 1,600 U.S. stores as a strategic advantage, suggesting they could support services like product authentication, order fulfillment, and live selling.
As of early 2026, GameStop reported around $9.4 billion in cash and investments and plans to finance the acquisition through a combination of internal funds and external capital.
If the deal goes through, Cohen said he would become CEO of the combined company and would not take a salary, bonuses, or exit compensation, tying his earnings entirely to the company’s performance.
While GameStop’s board has approved the proposal, eBay has not yet accepted the offer.