GameStop Submits $56 Billion Unsolicited Bid for eBay

GameStop submitted an unsolicited offer to acquire eBay for about $56 billion, with CEO Ryan Cohen stating the deal would transform eBay into a major rival to Amazon. The proposal values eBay at $125 per share in a mix of cash and stock, representing a roughly 20% premium to eBay's closing price on the previous Friday.

GameStop's offer is half cash and half stock, supported by a $20 billion financing letter from TD Bank.

Cohen, who co-founded Chewy and serves as an activist investor in GameStop, disclosed that his company has accumulated a roughly 5% stake in eBay through stock and options. 11% of the position. eBay confirmed receipt of the non-binding acquisition proposal and stated that its board of directors will review it to determine if it serves the best interests of the company and its shareholders.

The announcement followed eBay's strong first-quarter results reported late last month. In an interview with CNBC's Andrew Ross Sorkin on May 4, 2026, Cohen described the financing structure but faced questions on the deal's math, responding that details were available in a press release.

Sorkin pressed for clarification on how the half-cash, half-stock offer would cover the full $56 billion, with Cohen reiterating the structure and noting GameStop's ability to issue stock.

"Andrew, I laid it out clearly. I don't understand your question. We're offering half cash, half stock and we have the ability to issue stock in order to get the deal done. But the full details... that's on our website," Cohen said during the exchange.

Cohen indicated readiness to initiate a proxy fight to present the offer directly to eBay shareholders if the board proves unreceptive. He expressed confidence in his qualifications to lead eBay, citing his experience at GameStop and Chewy. "eBay should be worth—and will be worth—a lot more money," Cohen told the Wall Street Journal.

GameStop ended 2025 with a bolstered balance sheet, but analysts estimate the deal would require nearly $20 billion in debt financing to bridge the valuation gap, given eBay's market capitalization is roughly four times that of GameStop. Truist analyst Youssef Squali expressed skepticism about the bid's success, noting Cohen's ~5% stake in eBay and potential for a proxy contest.

Morgan Stanley analyst Nathan Feather highlighted financing as a key challenge and questioned potential synergies, while adding that the offer underscores eBay's increased strategic value in categories like collectibles and recommerce.

Trigon Brokerage analyst Dominik Niszcz viewed the valuation as justified by synergies, including cost savings, combining eBay's asset-light model with GameStop's physical stores and logistics, and revenue opportunities in gaming and collectibles. eBay shares rose as much as 13% in New York premarket trading on May 4, 2026, following news of the bid. 3%.

Polymarket odds for whether GameStop will acquire eBay stood at 27% as of May 4, 2026. Separately, the Gulf's construction market was worth $175 billion in 2025, driven by gigaprojects and oil-funded diversification, though recent pauses have occurred amid regional conflicts involving Iran.