Proposed Acquisition of eBay
In May 2026, GameStop formally proposed an acquisition of eBay
- On May 3, 2026, GameStop formally proposed to purchase eBay for approximately $56 billion
- On May 12, 2026, eBay formally rejected the proposal, calling it ‘neither credible nor attractive.’
“The more [eBay] fights me, the more . . . I’m not going to take no for an answer. I’m not going away. I’m a pain in the ass.”
From 2021 through 2025, GameStop was undergoing an unprecedented turnaround, during which time the company was focused on dealing with a poor outlook and its weakest financial position in its history. As of the fiscal year 2025 earnings results, GameStop was in the strongest financial position in its history.
Following the success of the turnaround, GameStop was in a position to go into its next phase. The proposal to acquire eBay has been the first and most significant development of this phase yet. The possible acquisition of eBay may be the first of numerous eventual mergers and acquisitions by GameStop.
GameStop has proposed a deal to buy eBay at a valuation of $55.5 billion, or $125 per share.
The proposed deal would provide half of that amount (approximately $28 billion) in cash (provided with a $20 billion loan from TD), and the other half in equity ownership in stock of the combined company of GameStop and eBay.
“Everyone is saying there is going to be a lot of dilution, and, yea there is dilution, but the dilution is accretive to both GameStop and eBay shareholders because we're going to be doubling the earnings power of the business. eBay's business and GameStop's business is going to continue growing, so it's EPS accretive to both GameStop and eBay shareholders.”
In the June 23, 2026 interview with David Friedberg on the All-In podcast, Ryan Cohen lays out his vision for what he would do with eBay:
- Immediately improve earnings through cutting costs
- eBay currently spends $2.4 billion on sales and marketing without any user growth
- Grow eBay in live commerce
- The total addressable market for live commerce is currently around $400 billion, and is growing quickly
- eBay has the brand, and the platform, but the platform needs major improvement
- Most people are not even aware that eBay Live exists
- It is not easy enough for sellers to use to make it attractive
- eBay should be the leader in this space
- Grow eBay into the leading marketplace for digital collectibles
- In-game items such as weapons and skins as well as other items that have utility value currently do not have a broad marketplace where these items can be bought and sold
- The addressable market could be much larger than eBay's existing marketplace for physical items
- Synergize GameStop's and eBay's businesses
- Using the approximately 1,600 GameStop stores, as "nodes" or "access points" for creators for a variety of purposes, including as studios for photography of merchandise, authentication, fulfillment, and logistics
“It's a lot of money. It's a big premium. And beauty is in the eye of the beholder, and it makes sense for me to pay this for the business because of what I could do with the business. Not just short term in terms of increasing the earnings, but long-term in terms of really taking significant market share in live commerce and building a digital marketplace for gaming.
That's something an existing management team would never be able to build in their wildest dreams.”
On May 1st, 2026, The Wall Street Journal broke the news that GameStop is preparing an offer to acquire eBay.
This news was met with mixed reactions across social media, including bewilderment about how GameStop, the much smaller company valued at around $12 billion in market capitalization at the time, could possibly acquire a much larger company, eBay, valued at over $40 billion in market capitalization.
On May 3rd, The Wall Street Journal published a followup article, GameStop Is Offering to Buy eBay for $56 Billion, CEO Ryan Cohen Says which included statements from Ryan Cohen.
“There is nobody who is more qualified, based on my experience, to run the eBay business”
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“I’m going to be as focused on eBay and as personally involved as I have been in the GameStop turnaround for the next few years.”
Ryan Cohen has been interviewing with a variety of outlets to deliver his message publicly.
- July 1: Interview with RALLI ROOTS on YouTube
- June 23: Interview with David Friedberg on the All-In Podcast
- June 19: Interview with Piers Morgan
- May 13: Interview with Anthony Pompliano
- May 13: Interview with Piers Morgan
- May 9: Interview with Justin Resells on YouTube
- May 9: Commentary with Business Insider
- May 8: Commentary with the Financial Times
- May 8: Interview in The Journal podcast by WallStreetJournal
- May 5: Interview with TBPN Business
- May 5: Interview with Charles Payne on Fox Business
- May 4: Interview with CNBC
- May 3: Commentary with the WallStreetJournal
“The platform stagnated over the last decade. And I could do a lot with eBay. That's a very strong business and that's right up my alley.”
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“I want to own eBay forever.”
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“It's not something that's going to take a few years. It's something that's going to happen fast fast fast because I'm putting leverege on this thing, and I don't want to run a leveraged business.
I'm not going to run it hot, I'm going to pay down the leverage and I am going to increase earnings.”
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“The goal here isn't to be an activist. The goal is: I want to own eBay, I want to run eBay. I want that to be my baby. I want to build something much larger, and cost-cutting frankly is the way to make the business more efficient to pay down the debt and innovate.”
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“I'm focused on what I can build over a long period of time. And if I got my hands on eBay, I can build something worth a lot and much larger than it is.”
Amidst the news of GameStop's proposal to acquire eBay, a variety of news outlets and commentators have provided their opinions on this move. Some of the sentiment has been quite negative and cynical.
Ryan Cohen's interview with CNBC produced numerous reactions. An article by businessinsider.com dissected the "bizarre" interview and stated that "Cohen looks distracted out of the gate." An article by Moneywise.com also called it "bizarre" and stated that it caused GameStop's stock to plummet, and that Cohen's answers came off as "rude, awkward, defensive, and ultimately unhelpful."
Fortune.com published an article titled Why GameStop’s bid for eBay echoes one of the worst business deals of all time, emphasizing that GameStop would be overpaying for eBay, and the combined company would be overvalued.
On an episode of Pivot with Kara Swisher and Scott Galloway, Kara Swisher said "This is a meme stocks -- this guy is such a moron. He's always trying to get that stupid stock up. The GameStop thing. And take advantage of people." Scott Galloway said: "There is no way they could do this. This should be a once sentence response from the board of eBay: 'You are not a serious people, period.' "
In places like gme_meltdown on Reddit, in typical fashion of cynicism and condescension, commenters are apparently celebrating at the tremendous bearishness of GameStop's proposal to acquire eBay, calling it "an amazing week," and stating "I used to pray for times like this."
On May 12, 2026, eBay formally rejected GameStop's unsolicited proposal to acquire it, calling it ‘neither credible nor attractive.’ Ryan Cohen reposted a post on X which provided a cynical interpretation of eBay's letter, suggesting that the true reason eBay rejected the offer is because the board of directors of eBay ‘remains focused on protecting the current regime and delivering “value”… mostly to [themselves] and [their] consultants.’
