GameStop Launches Surprise $56 Billion Takeover Bid for eBay
GameStop, the American video game retailer, stunned Wall Street on May 3 by making an unsolicited acquisition offer for global e-commerce platform eBay, valued at approximately $56 billion. CEO Ryan Cohen announced that GameStop has already built a roughly 5% stake in eBay and proposed to acquire the company at $125 per share in a cash-and-stock deal, representing a premium of about 20% over its closing price.
The proposal marks a dramatic pivot for GameStop under Cohen’s leadership, as the company seeks to expand beyond traditional video game retail into the broader e-commerce space. Cohen has been pushing GameStop’s digital transformation in recent years, but the scale of this eBay acquisition far exceeds market expectations. eBay, the world’s second-largest C2C e-commerce platform, reported over $10 billion in revenue in 2025 and serves active buyers across 190 markets worldwide.
According to the Wall Street Journal, the offer would be paid through a mix of cash and stock, though specific terms have not been disclosed. eBay has not yet formally responded to the acquisition proposal. Wall Street analysts widely view the move as bold but fraught with challenges, including regulatory approval, business integration between the two companies, and questions about whether GameStop has the financial capacity to complete the transaction.
Cohen, a well-known investor who previously helped drive the growth of pet supplies retailer Chewy, stated on social media that the deal would create synergies between the two companies, though detailed strategic plans have yet to be released. Following the news, eBay shares surged approximately 15% in after-hours trading, while GameStop stock also experienced significant volatility.
If the deal ultimately goes through, it would rank as one of the largest M&A transactions in the tech sector in 2026 and could signal a new trend of traditional retailers transforming into e-commerce platforms.
Source: Wall Street Journal, Reuters