GameStop announced plans to buy eBay for $56 billion.

GameStop Bets on eBay: $56 Billion per Share

The video‑game retail chain GameStop announced its intention to offer eBay’s board of directors a proposal to purchase all of the online auction platform’s assets at $125 per share, roughly 20 % above Friday’s closing price. If eBay’s leadership does not agree with that price, GameStop is prepared to make an equivalent offer directly to shareholders.

How the Deal Looks
- Half of the payment will be made in GameStop shares.
- The company currently owns about 5 % of eBay’s stock.
- eBay’s market capitalization is roughly four times larger than GameStop’s: $46 B versus $12 B.

Chief Executive Ryan Cohen (formerly CEO) explained that merging the two companies could:
1. Increase profits and cut costs.
2. Open new market opportunities for both platforms.
3. Create a “real competitor to Amazon.”

Potential Benefit to eBay
- GameStop promises to reduce eBay’s annual expenses by $2 B within the first 12 months after the deal, boosting earnings per share.
- The network of approximately 1,600 U.S. stores could serve as a platform for expanding eBay’s business.
- Cohen believes eBay “should be worth hundreds of billions” and is willing to use any available means to achieve that goal.

If eBay’s board rejects the proposal, GameStop intends to buy shares directly from shareholders. This is not Cohen’s first risky move—he is known for bold strategic decisions in the investment arena.

Financial Preparation
- Acquiring a more expensive company typically requires borrowing or issuing new shares.
- Cohen has already secured $20 B in financial guarantees from TD Securities that can be used for the transaction.
- At the end of January, GameStop had about $9.4 B in cash and highly liquid assets.
- Additionally, investment is planned from the Middle East.

If the deal goes through, Cohen intends to lead the combined company.

GameStop History
- Cohen joined the board in 2021 and later became CEO.
- At that time, the company was struggling: demand for physical games was falling while digital sales were rising.
- Thanks to his efforts, the business returned to profitability, though revenue fell by 14 % in the last quarter.
- eBay, founded in 1995, released a Q2 revenue forecast that beat market expectations.

Thus, GameStop is ready to take a bold step toward acquiring one of the largest online marketplaces to strengthen its position and create a new competitor to Amazon.