GameStop has made a non-binding, unsolicited proposal to purchase 100% of Ebay stock for $125 per share, or approximately $55 billion. GameStop, which has built a 5% economic stake in Ebay through derivatives and beneficial ownership of common stock, is proposing that its CEO Ryan Cohen lead the combined company if the acquisition takes place. Ebay acknowledged receipt of the proposal but made no additional comment.
The gaming retailer wants to use its approximately 1,600 U.S. store locations to provide Ebay with a “national network for authentication, intake, fulfillment and live commerce,” according to a company statement. Providing a brick-and-mortar network for the online platform could give it a competitive edge against other major marketplaces.
GameStop executives also believe the combined company would be able to get a better return on investment in key areas. The company’s statement claims that Ebay spent $2.4 billion in sales and marketing during its FY 2025 while only adding 1 million net active buyers. GameStop proposes delivering $2 billion in annualized cost reductions within 12 months of the deal’s closing by cutting approximately:
- $1.2 billion from sales and marketing;
- $300 million from product development; and
- $500 million from general and administrative expenses.
Ebay has been on an upward trajectory, announcing plans to purchase the Depop preloved marketplace in February 2026 from Etsy for $1.2 billion, a deal expected to close during Q2. Ebay generated $3.1 billion in revenue during Q1, a 19% increase over the $2.6 billion during the same period last year. Gross Merchandise Volume (GMV) also increased, climbing 18% to $22.2 billion.
In contrast, GameStop has had a checkered history over the past several years. In 2021 its stock was sent soaring by non-institutional investors, causing hedge funds that had bet against the troubled retailer to lose billions. The company went through three CFOs in approximately 12 months in 2021-2022, and when Cohen took on the CEO role in September 2023 he did so for a $0 annual salary to emphasize the need for cost-cutting at the troubled retailer.
For its 2025 fiscal year, which ended Jan. 31, 2026, GameStop generated net sales of $3.6 billion, a 5.1% decrease from the $3.8 billion in net sales during the previous fiscal year. For its Q4, net sales of $1.1 billion represented a 13% decrease from the $1.3 billion generated in the same period the previous year.
In January 2026 GameStop announced plans to shrink its store footprint by 475 stores in 43 states by the end of its 2025 fiscal year in January 2026. This followed the closure of 600 U.S. stores during GameStop’s FY 2024, revealed in March 2025.
