Video game retailer GameStop has made an unsolicited $55.5 billion (£41 billion) bid to acquire eBay, with CEO Ryan Cohen warning that the offer could turn hostile if rejected by eBay's board.
Bid Details
GameStop, which has quietly accumulated a 5% stake in eBay, is offering $125 per share, split evenly between cash and stock. The bid is ambitious given GameStop's market valuation of roughly $12 billion, compared to eBay's $46 billion. eBay was founded in 1995 by Pierre Omidyar as a side hobby.
Cost-Cutting Plans
In a letter to eBay chair Paul Pressler, Cohen claimed that under his leadership, eBay could be worth much more. He promised an immediate cost-cutting programme that would slash $2 billion in annual spending. “eBay should be worth – and will be worth – a lot more money,” Cohen told the Wall Street Journal. “I’m thinking about turning eBay into something worth hundreds of billions of dollars,” he added, suggesting it could become a legitimate competitor to Amazon.
Cohen, known as the “meme king” among retail traders, said he would take the offer directly to eBay shareholders if the board is not receptive. The bid is backed by a $20 billion loan from TD Securities, with potential additional funding from Middle Eastern sovereign wealth funds.
GameStop's Meme Stock History
GameStop rose to fame during the 2021 meme stock craze, when retail investors drove shares from $3.25 in April 2020 to $347.50 in January 2021 – a 10,692% surge. This frenzy nearly bankrupted several hedge funds that had bet against the company. Since then, GameStop has closed hundreds of stores, including 590 in 2025, but Cohen believes the remaining 1,600 sites can serve eBay as a national network for authentication, fulfilment, and live commerce.
Synergy Potential
GameStop's stores could act as drop-off and shipping nodes, as well as broadcasting studios for livestreamed auctions. “GameStop staff already inspect and grade hardware and trading cards every day. Sellers walk in, items are verified on the spot, and listings carry a trust badge,” the company's slide deck stated.
Criticism of eBay's Spending
Cohen criticised eBay for spending $2.4 billion on sales and marketing in 2025 while only achieving a 0.75% net increase in active buyers. “More spend is not producing more users on a marketplace with near-universal brand recognition,” he wrote. His cost-cutting plan would reduce eBay's sales and marketing budget by $1.2 billion, product development by $300 million, and administrative departments by $500 million.
“Our board unanimously supports this proposal,” Cohen said.
eBay's Recent Performance
The bid came days after eBay reported first-quarter revenue of $3.09 billion, beating analyst estimates of $3.04 billion, aided by AI improvements and demand for collectibles. eBay expects second-quarter revenue to exceed Wall Street forecasts. The company is also acquiring British secondhand fashion app Depop from Etsy for about $1.2 billion to attract younger consumers.
