By Kashmira Konduparty
The video game retailer GameStop has made an unexpected move by proposing to acquire the e-commerce giant eBay. The deal is valued at about $55.5 billion, according to a company statement.
The offer includes cash and stock, valuing eBay shares at $125 each, which is a significant premium over their recent closing price. This bid shows GameStop’s plan to expand beyond traditional retail.
GameStop’s CEO Ryan Cohen stated he is ready to go around eBay’s leadership if necessary. “We are willing to take our proposal directly to shareholders,” he said. This indicates the company is prepared to escalate the process if the board does not engage.
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eBay confirmed it has received the unsolicited proposal and mentioned that the combined company could save around $2 billion in costs within the first year after the acquisition. Cohen also said he would lead the merged company without a salary and would be “compensated solely based on performance.”
This move comes as GameStop continues changing after its rise during the pandemic when retail investors caused significant fluctuations in its share price. The company still runs about 1,600 stores across the United States and has reported improving profitability. Its net income rose significantly in 2025, even though overall sales declined.
On the other hand, eBay, founded in 1995, has faced growing competition from major online retailers like Amazon. The platform’s global user base has dropped from about 175 million in 2018 to roughly 136 million today.
Despite this decline, eBay remains much larger than GameStop in market value, highlighting the scale and risk of the proposed takeover.
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Industry experts say the bid shows a broader shift in strategy, as GameStop tries to reinvent itself through digital growth and platform-based commerce. However, there are still questions about whether eBay’s board and stakeholders will approve the deal, given the size difference between the two companies.
If successful, the acquisition would be one of the most surprising partnerships in recent years, merging a once-struggling retailer with one of the internet’s earliest and most famous marketplaces.
For now, the proposal is still under consideration, and neither company has indicated whether negotiations will proceed.