Seemingly out of the blue, GameStop has announced its intention and proposal to acquire 100% of eBay at $125.00 per share in cash and stock.

GameStop Proposes to Acquire eBay at $125.00 Per Sharehttps://t.co/QYynT84H7Z

— GameStop (@gamestop) May 4, 2026

The offer will be compromised of 50% cash and 50% GameStop common stock, with full shareholder election rights as to consideration type and pro-data allocation. Aggregate undiluted equity value is approximately $55.5 billion, based on eBay’s most recently disclosed undiluted share count, representing a 27% premium to the 30-day VWAP and a 36% premium to the 90-day VWAP.

GameStop noted in its announcement that GameStop is not making enough money for what’s spending. According to GameStop, it would deliver $2 billion of annualized cost reductions within 12 months of closing the dealm suggesting plans for significant cuts. GameStop also talked about using its 1,600 retail locations to  “give eBay a national network for authentication, intake, fulfillment, and live commerce,” confirming plans to bring the eBay business into its stores.

GameStop CEO Ryan Cohen, who would become the CEO of the combined company, talked with The Wall Street Journal about his vision for the future of this new merger, believing “it could be a legit competitor to Amazon. Ebay should be worth – and will be worth – a lot more money. I’m thinking about turning eBay into something worth hundreds of billions of dollars.”

Ebay said that it will review the offer “with a focus on the value to be delivered to eBay shareholders, including the value of the GameStop stock consideration and the ability of GameStop to deliver a binding, actionable proposal.”

Cohen said that if eBay turns the offer down, he would make his case directly to shareholders. “There is nobody who is more qualified, based on my experience, to run the eBay business,” Cohen insisted. As for where he’ll get the money needed for the deal, The Wall Street Journal said Cohen may turn to Middle Eastern sovereign-wealth funds.