GameStop Proposes $56 Billion Takeover of eBay

GameStop has proposed a $56 billion cash-and-stock deal to acquire eBay, marking an aggressive move by the video game retailer to take over the digital marketplace [1]. GameStop CEO Ryan Cohen, who holds a 5% stake in the company, stated he is prepared to bypass eBay’s board and take the offer directly to shareholders if the proposal is rejected [2]. The bid values eBay at $125 per share, a significant premium over its current market valuation of approximately $46 billion [3].

The offer represents a major escalation for GameStop, a company that gained notoriety during the 2021 meme-stock frenzy but currently carries a market capitalization of roughly $12 billion—about one-fourth the size of its target [1]. Cohen, who has led GameStop since 2020, claims in a letter to eBay chair Paul Pressler that the marketplace could achieve higher value under his leadership [3].

eBay’s journey to becoming a takeover target spans three decades of transformation. Founded by Pierre Omidyar in 1995 as an online auction platform called AuctionWeb, the company went public on the Nasdaq in 1998 at $18 per share [1]. Over the following years, eBay expanded through a series of high-profile acquisitions and divestitures, including the purchase and subsequent spin-off of PayPal, the acquisition and sale of Skype, and the divestment of its classifieds business to Adevinta for $13 billion in 2020 [2].

The company has recently shifted its focus toward emerging technologies. In 2025, eBay partnered with OpenAI to develop "Operator," a research preview of next-generation AI agents designed to assist users [1]. These efforts to modernize the platform follow a long history of adapting its business model, which has included everything from selling luxury items like a $160 million gigayacht to acquiring niche marketplaces like TCGplayer and Certilogo [2].

Whether the eBay board will engage with the proposal or mount a defense remains the central question. With GameStop signaling its willingness to turn the bid hostile, the future of the 30-year-old marketplace now hinges on whether shareholders view the retailer's ambitious valuation as a viable path forward or a risky overreach.