GameStop Makes $55.5 Billion Bid to Buy eBay and Take on Amazon

Yeah, you read that right.

GameStop, the same company people have been writing obituaries for since about 2017, has submitted a non-binding proposal to acquire eBay for $55.5 billion at $125 per share in a 50/50 cash-and-stock split. That price represents a 20% premium over where eBay was trading on Friday and a 46% premium to its close back in February. CEO Ryan Cohen, who would take over as CEO of the combined company if this goes through, told the Wall Street Journal he wants to make eBay "a legit competitor to Amazon."

Whether you think that's bold or delusional probably depends on how much you trust Cohen at this point.

Where Is the Money Coming From?

GameStop held roughly $9.4 billion in cash and liquid investments as of January 31, 2026. For the rest, Cohen has secured a commitment from TD Securities for up to $20 billion in debt financing, with the remainder potentially covered through issuing additional GameStop shares. He told CNBC on Monday he hasn't even spoken to eBay's management yet, which is a very Ryan Cohen thing to do.

When asked where the rest of the funding comes from, the WSJ reported Cohen is eyeing Middle Eastern sovereign-wealth funds. So, still a few blanks to fill in there.

The GameStop and eBay Overlap

Here's where Cohen's thinking gets interesting, at least on paper. GameStop has shifted its focus toward higher-margin nostalgia goods, trading cards, retro consoles, and collectibles over the last few years. The pitch is that its 1,600 U.S. stores become physical drop-off and authentication points for eBay sellers. Walk in, get your item graded and verified on the spot, list it with a trust badge. Cohen said: "GameStop staff already inspect and grade hardware and trading cards every day."

He also wants eBay leaning harder into live commerce, real-time video selling, which is big in Asia and slowly gaining ground in Western markets. The idea of a physical retail network feeding into an online marketplace isn't completely off the wall.

The problem is GameStop's market cap sits at just under $12 billion. eBay's is around $46 billion. This is a company trying to buy something four times its own size.

What's in It for Cohen?

Quite a lot, actually. GameStop announced a compensation package earlier this year that gives Cohen up to $35 billion in stock if the combined company hits a $100 billion market value, among other targets. Cohen told the WSJ in January he wanted a "big" deal that is "ultimately either going to be genius or totally, totally foolish." That quote is doing a lot of heavy lifting right now.

In his letter to eBay's board, Cohen said he would take no salary, no cash bonuses, and no golden parachute, only performance-based compensation tied to the company's value. That's either genuine confidence or the most expensive gamble in gaming history.

eBay Has Not Responded Well

GameStop's offer is unsolicited. eBay's management has not publicly responded, and Cohen made clear he's willing to go directly to shareholders if they shut the door. He told CNBC: "There is nobody who is more qualified, based on my experience, to run the eBay business." Investor Michael Burry, who holds GameStop shares, was less enthusiastic earlier this year, saying Cohen "has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash and wait for an opportunity to make a big buy of a real growing cash cow business."

That's about as blunt as it gets from someone who's supposed to be on your side.

GameStop's Actual Business Right Now

It's worth remembering the context here. GameStop closed 590 U.S. locations during 2025 and then started shutting more at the start of 2026. Net sales for the fiscal year ending January 31, 2026 came in at $3.63 billion, down from $3.82 billion the year before. It did post an operating income of $232.1 million, a reversal from a $26.2 million loss in 2024, which is at least something.

The company pulled out of crypto in August 2023, shut down its NFT marketplace shortly after, and held a "Trade Anything Day" that let customers bring in, well, anything for store credit. The meme stock energy is still there, Cohen is still its biggest individual shareholder with over 9% of the company, and shares for both GameStop and eBay jumped after the news broke.

Whether eBay's board takes this seriously or treats it like a publicity stunt, the next few weeks should be worth watching.