GameStop has launched an unsolicited $56 billion bid to acquire eBay, according to xataka.com.mx.
CEO Ryan Cohen intends to merge the two companies to build a heavyweight competitor against Amazon. The plan leverages GameStop's 1,600 physical stores to serve as logistics and authentication centers.
Cohen aims to reduce annual expenses by up to $2 billion and implement live commerce to revitalize eBay's auction platform.
However, the scale of the proposal has triggered significant skepticism regarding the financial and logistical reality of the deal.
eBay’s market capitalization of approximately $46 billion is nearly four times larger than GameStop’s $12 billion valuation. eBay also operates at a much larger scale, with 135 million active users worldwide.
Financial discrepancies are notable, as eBay's 2025 revenues reached $11 billion. This figure is nearly equal to the total market value of GameStop itself.
GameStop's history includes a 2021 short squeeze where Reddit-organized investors drove share prices from $17 to over $500. Following years of struggle due to the COVID-19 pandemic and digital competition, the company is now attempting this massive expansion.
GameStop proposed paying $125 per eBay share, representing a 20 percent premium over the price recorded on May 1. The offer consists of 50 percent cash and 50 percent GameStop stock.
Doubts intensified after Cohen appeared on CNBC 24 hours after the proposal. When asked how the company could afford the $55.5 billion acquisition, Cohen replied, "It is on our website. It is half cash, half stock."
Business Insider reported that Cohen repeated this phrase for much of a 15-minute interview. At one point, the CEO simply stated, "we'll see what happens."
Interviewer inquiries highlighted a funding gap of between $16 billion and $20 billion, even after Cohen suggested the firm could secure up to $20 billion in financing. The interview concluded without a clear explanation of the acquisition's funding source.
Cohen threatened a hostile takeover if eBay's board rejects the offer. He maintains that his proposal will drastically increase eBay's value and that current shareholders will support the move.
Market reaction remains mixed. eBay shares rose approximately 5% to $109, remaining well below the $125 offer price. Meanwhile, GameStop shares fell 10%.
Investors are also monitoring GameStop’s $368 million bitcoin reserve. Any potential sale of these holdings to fund the acquisition could trigger significant volatility in global cryptocurrency markets.
