GameStop has submitted an unsolicited, non-binding proposal to acquire eBay for $56 billion, or $125 per share, in a mix of 50 percent cash and 50 percent stock. This represents a 20 percent premium to eBay's closing price on Friday. The video game retailer, which has been pivoting toward collectibles and nostalgia items amid declining sales, sees the deal as a path to diversification.

CEO Ryan Cohen, who would lead the combined company without a salary or bonuses—relying solely on performance incentives—envisions integrating eBay's operations with GameStop's 1,600 U.S. stores for authentication, fulfillment, and live commerce. Funding would draw from GameStop's approximately $9 billion in cash and liquid assets, supplemented by up to $20 billion in debt financing committed by TD Bank, with potential involvement from sovereign-wealth funds. Cohen projects $2 billion in annualized cost reductions within 12 months.

Wall Street analysts expressed skepticism, with Bernstein noting eBay's ongoing turnaround and questioning the need for disruption. Investor Michael Burry described GameStop as a 'crappy business' leveraging meme stock cash for a 'real growing cash cow.' eBay confirmed it would review the proposal with its board and advisers, emphasizing shareholder value.

GameStop's fiscal 2026 revenue fell to $3.630 billion from prior years, prompting store closures from 2,325 to 1,735 locations. The market reacted with eBay shares jumping in premarket trading, while the feasibility of the deal remains under scrutiny given GameStop's smaller market capitalization.