finance
GameStop Proposes $56 Billion Acquisition of eBay
GameStop has proposed an unsolicited $56 billion acquisition of eBay, aiming to combine physical retail with online marketplace operations. CEO Ryan Cohen, who founded Chewy, outlined plans for cost cuts and synergies, but analysts question the deal's feasibility due to GameStop's smaller size and funding gaps. eBay's board will review the offer focused on shareholder value.
May 4, 2:01 PM·2m read3 sources
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GameStop proposed acquiring eBay in an unsolicited offer valued at $56 billion, or $125 per share in a mix of cash and stock. The proposal, made on February 4 after GameStop had accumulated a roughly 5 percent stake, represents a 46 percent premium to eBay’s closing price that day.
eBay said it received the proposal without any prior discussions and that its board of directors would review it “to determine the course of action that it believes is in the best interests of the company and its shareholders,” according to the company’s statement.
In a letter to eBay Chairman Paul Pressler, GameStop Chairman and CEO Ryan Cohen outlined a plan to integrate GameStop’s approximately 1,600 physical stores in the United States as drop-off locations, authentication centers, fulfillment nodes and live-commerce broadcasting studios.
Cohen said the stores could serve these functions with no additional capital expenditure for eBay.
GameStop reported $9.4 billion in cash and liquid investments as of January 31. The company said it intends to fund the cash portion of the deal with its balance sheet and third-party financing, and it obtained a “highly confident” letter from TD Securities for up to $20 billion in debt financing.
” The proposal envisions eBay continuing to operate as a third-party marketplace while applying cost reductions of $1.2 billion in sales and marketing expense, $300 million in product development and $500 million in general and administrative costs.
GameStop noted that eBay’s $2.4 billion in fiscal 2025 sales and marketing spend produced only 1 million net new active buyers, increasing the total from 134 million to 135 million. The plan calls for consolidating certain functions including finance, human resources and others after a merger.
