GameStop offers to purchase eBay in $56 billion deal
GameStop Corp. is making an unexpected and high stakes attempt to acquire eBay Inc.
Long-struggling video game retailer GameStop has submitted an unsolicited, non-binding proposal to acquire 100% of eBay at $125 per share in 50% cash and 50% stock. The offer represents a 46% premium to eBay’s unaffected closing price on Feb. 4, 2026, the day GameStop started accumulating its position in eBay, and equals roughly $55.5 billion.
GameStop says it has built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock and that it has received a letter from TD Securities for up to $20 billion in financing. The full proposal letter and accompanying materials are available here.
Some industry analysts were skeptical of the deal. GameStop’s current market value is just below $12 billion, while eBay’s is $46 billion, reported CNBC.
"We are offering half cash, half stock, and we have the ability to issue stock in order to get the deal done," Cohen told CNBC. "But the full details of the offer on our website. “We will see what happens.”
In a statement posted on its website, eBay confirmed receiving GameStop's offer and said it had "no discussions with or outreach from GameStop prior to receiving the proposal." eBay's board of directors, in consultation with its financial and legal advisors, will review the proposal and the company is advising shareholders to take no action at this time.
"The board will review this proposal with a focus on the value to be delivered to eBay shareholders, including the value of the GameStop stock consideration and the ability of GameStop to deliver a binding, actionable proposal," eBay said in the statement.
Collectibles a financial bright spot for GameStop
GameStop Corp.’s most recent fourth-quarter earnings rose amid tight cost controls even as its sales continued to fall. Adjusted net income was $291.4 million, compared to $136.4 million for the prior year's fourth quarter. Adjusted earnings were $0.49 cents per share, topping analyst estimates of $0.37 per share.
Net sales fell to $1.104 billion from $1.283 billion in the prior year's fourth quarter. Analysts had expected sales of $1.47 billion. However, collectibles, a strong category for eBay, were a bright spot, with sales rising to $365 million from $270.6 million. The category now makes up about a third of GameStop's total sales, up 21% year over year.
In addition to increasing its presence in the lucrative collectibles space, including the recent launch of a digital trading card platform called “Power Packs,” other digital steps GameStop has taken to boost its financial performance include investing in bitcoin as a treasury reserve asset, with selling part or all of the investment off at any time as an option, with its bitcoin and related receivables valued at $368.4 million at the close of the quarter.
GameStop reportedly closed more than 470 U.S. stores during its fourth quarter of fiscal 2025 (ended Jan. 31, 2026) and in its third-quarter earnings report said it had closed 590 stores in the U.S. during the previous fiscal year as part of a “store portfolio optimization review.”
Meanwhile, in its most recent first quarter of fiscal 2026, eBay beat Wall Street expectations with $3.09 billion in revenue and adjusted earnings per share of $1.66, with increased advertising helping drive overall revenue growth. Sales reached $22.2 billion, up 18% year-over-year.
GameStop sees cost reductions
According to GameStop, eBay spent $2.4 billion on sales & marketing in fiscal 2025 while only adding 1 million net active buyers (134 million to 135 million - a net increase of less than 0.75%). GameStop says it will deliver $2 billion of annualized cost reductions within twelve months of closing.
This anticipated savings includes $1.2 billion from sales and marketing, $300 million from product development and $500 million from general & administrative by consolidating finance, HR, real estate, legal, IT, and professional services across the combined company.
On cost reductions alone, GameStop predicts eBay’s diluted GAAP earnings per share from continuing operations would increase from $4.26 to $7.79 in the first year. Beyond cost, GameStop’s says its roughly1,600 US retail locations would give eBay a “national network for authentication, intake, fulfillment, and live commerce.”
If the deal goes through, following close, GameStop CEO Ryan Cohen, who has held his current position since January 2021, will serve as CEO of the combined company and be compensated solely based on the performance of the combined company.
However, in January 2026, GameStop unveiled a performance award worth roughly $35 billion that is designed to incentivize Cohen to achieve “extraordinary growth.” At that time, Cohen said GameStop was considering “a major acquisition of a publicly traded firm in the retail or consumer arena.”
[READ MORE: GameStop unveils $35B pay plan for CEO Ryan Cohen]
This is a developing story, check back for updates.
