Here’s why a GameStop-eBay merger would – and wouldn’t – make sense

GameStop’s offer to acquire eBay has garnered a lot of attention – and a firm “no” from eBay, but could it actually work?

In a bold and much-publicized recent move, long-struggling video game retailer GameStop submitted an unsolicited, non-binding proposal to acquire 100% of eBay at $125 per share in 50% cash and 50% stock, or roughly $55.5 billion. 

[READ MORE: GameStop offers to purchase eBay in $56 billion deal]

Many industry analysts and observers have been skeptical of the proposed acquisition, and eBay’s board has since determined it will reject the offer, with the online giant’s chairman of the board publicly calling the proposal “neither credible nor attractive.”

But does this proposal make sense? While there is no singular answer to that question, let’s take a look at two reasons it does make sense, and two reasons it does not.

Reasons it makes sense

On the surface, GameStop and eBay would appear to have little opportunity for overlap or integration. However, there are at least two areas where the two retailers complement one another nicely:

eBay gains brick-and-mortar stores

Although GameStop reportedly closed more than 470 U.S. stores during its fourth quarter of fiscal 2025 and in its third-quarter earnings report said it had closed 590 stores in the U.S. during the previous fiscal year, the retailer still operates roughly 1,600 U.S. locations.

In its justification for the purchase offer, GameStop said its physical stores would give eBay a “national network for authentication, intake, fulfillment, and live commerce.” 

While they were not operated by eBay itself, brick-and-mortar “eBay stores,” including the iSold It on eBay franchise, were popular in the early 2000s (and a plot point in the 2004 comedy “The 40-Year-Old Virgin”) and provided one-stop dropoff and pickup services for eBay transactions. 

With the growing popularity of physical stores, especially among Gen Z consumers, there is no reason GameStop stores could not serve as official eBay stores, offering similar services in a dedicated section of the store. Some stores could even be rebranded as eBay locations. The success of eBay’s numerous pop-up store initiatives also suggests this synergy could pay dividends.

Collectibles synergy

Collectibles, a strong category for eBay, are also a bright spot for GameStop, with sales rising to $365 million from $270.6 million year over year in its most recent fourth quarter. 

The category now makes up about one-third of GameStop's total sales, up 21% year over year. Collectibles are also an increasingly important category for eBay, which hosts special sales events focused on collectible product lines such as Pokemon and Star Wars. 

eBay would give GameStop a stronger online presence for selling collectibles, while eBay’s collectible offering could be a draw for the  previously mentioned eBay stores.

Reasons it doesn’t make sense

Sometimes the surface factors are the most important ones. Here are two reasons a GameStop-eBay merger would face difficulty:

Size and performance

The most obvious impediment to a successful acquisition of eBay by GameStop is that eBay is simply a much bigger retailer. 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.”

GameStop has also received a letter from TD Securities for up to $20 billion in financing. Still, companies do not frequently purchase other businesses that have roughly four times their market value. 

In addition, eBay and GameStop are currently on different financial performance tracks. In its most recent fourth-quarter earnings, GameStop’s adjusted net income was $291.4 million, compared to $136.4 million for the prior year's fourth quarter.

However, the retailer’s 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. 

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.

Difference in models

At their core, GameStop and eBay have very dissimilar operating models. Although retailers and brands do operate digital storefronts on eBay, 70% of the online giant’s business comes from peer-to-peer transactions. 

In contrast, while GameStop has a pre-owned software offering, it represents a small part of the gaming retailer’s total revenue, which mostly comes from traditional business-to-consumer sales. 

And despite the increasing synergy in collectibles, the companies have largely different product bases, with GameStop focused on software and video games while eBay sells across virtually all categories with heavy representation from used items.