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GameStop has submitted a non-binding proposal to acquire 100% of eBay at $125.00 (£92.2) per share, valuing eBay’s equity at approximately $55.5bn (£40.9bn).
The offer represents a 46% premium to the closing price of Ebay on 4 February 2026, the date GameStop began accumulating its 5% economic stake in the company.
Under the terms, shareholders would receive 50% cash and 50% GameStop common stock. GameStop intends to fund the cash portion through existing balance sheet reserves of $9.4bn (£6.94bn) and third-party financing.
The company stated it has received a highly-confident letter from TD Securities for up to $20bn (£14.7bn) in acquisition financing.
GameStop executives claim the merger will deliver $2bn (£1.48bn) in annualised cost reductions within 12 months. These savings include $1.2bn (£890m) from sales and marketing and $500m (£369.1m) from administrative overheads.
The proposal suggests that 1,600 GameStop retail locations in the US could serve as a national network for authentication and fulfillment.
Ryan Cohen, who has led GameStop since 2021, would serve as chief executive of the combined company following the close of the transaction.
Cohen, chief executive of GameStop, said: “On cost reductions alone, eBay’s diluted GAAP earnings per share from continuing operations would increase from $4.26 (£3.15) to $7.79 (£5.75) in year one. Beyond cost, GameStop’s 1,600 US retail locations give Ebay a national network for authentication, intake, fulfillment, and live commerce.”
