Ryan Cohen's GameStop Makes Unsolicited $56 Billion Offer to Buy eBay
GameStop CEO Ryan Cohen submitted a non-binding proposal to acquire eBay for $56 billion — $125 per share, 50/50 cash and stock. The bid faces serious financing questions but promises $2B in annual cost savings and a direct challenge to Amazon.
Ryan Cohen wants to buy eBay. The GameStop CEO submitted a non-binding proposal on May 3 to acquire eBay Inc. for $56 billion — $125 per share in a 50/50 cash-and-stock split — representing a roughly 20% premium to eBay’s closing price before the bid became public. Cohen disclosed that GameStop has quietly built a roughly 5% stake in eBay ahead of the approach.
The financing is aggressive by any measure. Cohen secured a $20 billion commitment letter from TD Bank for debt. GameStop’s own market cap sits around $12 billion, with roughly $9 billion in cash on its balance sheet. Even combined, the math falls approximately $15 billion short of the stated offer price — a gap that analysts were quick to flag as a potential dealbreaker. Cohen addressed the shortfall during a combative CNBC appearance on May 4, defending the proposal without fully accounting for the shortfall publicly.
In a memo to investors, Cohen pledged to identify $2 billion in annual cost savings within 12 months of closing, and described his intent to transform eBay into “a legitimate competitor to Amazon.” eBay’s board said it would “carefully review” the offer and advised shareholders to take no action.
GameStop shares fell sharply on the news — a market signal that investors are skeptical the deal pencils out at the stated terms. eBay’s stock moved higher on the premium embedded in the offer.
The proposal is the most dramatic move yet in Cohen’s campaign to reposition GameStop beyond its original retail identity. During the 2021 meme-stock frenzy, GameStop raised billions through equity offerings — Cohen converted that capital into a cash reserve and has been explicit about deploying it through acquisitions rather than growing the legacy business.
Whether this bid closes or not, the logic has some internal coherence. eBay generates roughly $10 billion in annual revenue and operates an established marketplace with hundreds of millions of users, particularly in secondary markets for collectibles, electronics, and gaming hardware — categories Cohen knows well. A combined entity with meaningful cost rationalization and Cohen’s aggressive operational stance could theoretically close the gap on Amazon’s marketplace dominance.
The more immediate question is whether the financing structure can be made to work. M&A advisers familiar with the deal note that bridge financing of this scale, combined with GameStop’s modest earnings base, would result in a heavily leveraged entity. TD Bank’s $20 billion commitment suggests at least one major institution sees a viable path. Whether others join the capital stack before a binding offer is submitted remains the central unknown.
For eBay, the offer arrives at a difficult moment. The company has been navigating steady share losses to Amazon and specialty vertical competitors for years. A premium exit — if the deal could close — might look attractive to a board and investor base that has waited a long time for the stock to rerate.
The formal answer from eBay’s board is expected within weeks.