CEO wants to turn a struggling e-commerce giant into an Amazon rival
GameStop, worth US$12bn, is trying to buy eBay, worth US$46bn — and its CEO says he hasn't even called them yet.
Ryan Cohen submitted an unsolicited, non-binding proposal on Sunday to acquire 100 percent of eBay for US$125 per share in a cash-and-stock deal valuing the e-commerce platform at roughly US$55.5bn, GameStop announced.
The offer comprises 50 percent cash and 50 percent GameStop common stock, representing a 20 percent premium to eBay's Friday close of US$104.07 and a 46 percent premium to its unaffected closing price on 4 February — the day GameStop began accumulating its position.
Cohen told CNBC on Monday that he had not yet started any conversation with eBay's management.
Speaking on Squawk Box, he said "we are just starting," adding that eBay's public company structure creates misaligned incentives across its board and management that dictate his approach.
He told the Wall Street Journal he is prepared to pursue a proxy fight and appeal directly to eBay's shareholders if the board is unreceptive.
The deal's financing structure raises immediate questions.
GameStop held roughly US$9.4bn in cash and liquid investments as of 31 January and has received a highly confident letter from TD Securities for up to US$20bn in debt financing.
Cohen has also said he may seek backing from Middle Eastern sovereign wealth funds, per the the Journal.
Even combined, those figures leave a substantial gap against the roughly US$55.5bn implied deal size, and Cohen offered limited clarity on Squawk Box, repeatedly directing viewers to the company's website.
"We will see what happens," he said.
Markets were sceptical.
CNBC reported EBay shares climbed about 5.5 percent on Monday to around US$109 — well below the US$125 offer — while GameStop stock fell nearly 10 percent.
Prediction markets traders on Kalshi gave the deal just a 26 percent chance of closing in 2026; those on Polymarket put the odds at 15 percent.
GameStop's offer letter targets US$2bn in annualised cost reductions within 12 months of closing, according to the company's statement.
It identified roughly US$1.2bn in savings from eBay's sales and marketing budget — which totalled US$2.4bn in fiscal 2025 while net active buyers grew by less than 0.75 percent, from 134m to 135m users.
A further US$300m would come from product development and US$500m from consolidating general and administrative functions.
On cost reductions alone, GameStop projected eBay's diluted GAAP earnings per share would rise from US$4.26 to US$7.79 in year one.
Cohen also pitched GameStop's roughly 1,600 US retail locations as a national network for authentication, intake, fulfilment, and live commerce.
"It could be a legit competitor to Amazon," Cohen told the Journal.
EBay's gross merchandise volume slid from a peak of US$100bn in 2020 to US$79.6bn in 2025 as competition from Amazon, Walmart, TikTok Shop, Temu, and Shein intensified, per eBay's investor releases.
Cohen argued the business is "under-earning," with earnings potentially doubling under tighter cost controls.
Stalled user growth and US$2.5bn in sales and marketing spending, he told CNBC, left "a lot of fat to cut."
EBay confirmed receipt of the offer and said its board would review it.
Not everyone agrees.
Bernstein analysts wrote in a note to clients that while there is overlap between the two companies in games, toys, and collectibles, the strategic rationale remains unclear, and that eBay's recent execution under CEO Jamie Iannone has been solid.
"Why disrupt things?" the firm wrote. "The turnaround is working."
The Canadian entrepreneur founded Chewy, sold to PetSmart for US$3.35bn in 2017, before joining GameStop's board in January 2021 and becoming CEO in September 2023.
Under his leadership, GameStop moved from a US$381m net loss in fiscal 2021 to US$418m of net income in fiscal 2025, cutting SG&A by roughly US$800m and retiring its legacy debt, according to the company's statement.
Cohen owns roughly 9 percent of GameStop, takes no salary or cash bonuses, and holds stock options that could be worth more than US$35bn if the combined company reaches a US$100bn valuation — giving him a direct financial incentive to pursue a transformative deal.
He first signalled his intent in January, telling CNBC the acquisition would be "transformational" and "never been done before within the history of the capital markets."
The proposal is subject to approval from eBay's board, regulators, and shareholders of both companies.
