GameStop offers $56 billion for eBay, struggles to explain how it’ll pay for it

In a surprising move, GameStop has made an unsolicited bid to acquire eBay for a staggering $55.5 billion. The gaming retailer argues that eBay has not been performing up to its potential, citing excessive spending on sales and marketing as a key issue. GameStop believes that by merging with eBay, it can streamline operations and cut costs, ultimately creating a more robust company. GameStop's Chairman and CEO, Ryan Cohen, reached out to eBay Chairman Paul Pressler, outlining how GameStop's approximately 1,600 retail locations across the United States could enhance eBay's operations. Cohen highlighted that these stores would facilitate a national network for item authentication, intake, fulfillment, and live commerce. Despite the ambitious proposal, skepticism looms over GameStop's ability to finance such a significant deal, especially considering that eBay's market capitalization is more than four times that of GameStop's. However, GameStop has expressed confidence in securing debt financing, planning to utilize a combination of cash and stock to fund the acquisition. The proposal envisions GameStop staff taking on the role of inspectors for items listed on eBay. Currently, GameStop employees inspect and grade hardware and trading cards on a daily basis, allowing sellers to verify items instantly at the store, which would enhance trust for buyers. The proposed plan also includes using GameStop locations as drop-off and shipping points, creating a national fulfillment network while minimizing additional capital expenditures for eBay. Moreover, GameStop's strategy includes transforming its stores into broadcasting studios, where eBay would provide the inventory and customer base, while GameStop would leverage its physical presence to thrive in the live-commerce sector. This approach aims to assist eBay sellers in promoting their products through livestreaming. If the merger goes through, Cohen has expressed his desire to assume the CEO position of the newly formed company. Notably, Cohen, who owns around 9% of GameStop, does not take a salary or bonuses, with his compensation tied solely to the success of the merged entity. Despite facing challenges, including the closure of roughly 470 stores in the U.S. in early 2026 and 590 stores in 2024, GameStop continues to navigate its post-meme stock journey. As of now, GameStop's stock has seen a slight decline of around 2%, while eBay's shares have experienced a nearly 6% uptick.