GameStop, “the world’s largest retail gaming and trade-in destination for Xbox, PlayStation, and Nintendo games, systems, consoles & accessories,” offered to buy 100% of eBay, it announced in a press release on Sunday evening.
Sellers who had learned of the rumor printed in the Wall Street Journal on Friday were concerned that such an acquisition might result in higher selling fees.
GameStop didn’t mention plans to raise fees, but it promised shareholders it would slash costs. It also said its physical footprint would be an advantage: “GameStop’s ~1,600 US retail locations give eBay a national network for authentication, intake, fulfillment, and live commerce.”
In January, GameStop said that when CEO Ryan Cohen joined the Board in 2021, GameStop’s market capitalization was approximately $1.3 billion, and said that in 2026, its market capitalization stood at approximately $9.3 billion, representing a 615% increase in stockholder value during his tenure.
The numbers came from a January 7, 2026, GameStop press release announcing it had granted a performance-based stock option award to Cohen (in lieu of any form of compensation, including salary) – designed to incentivize him to achieve extraordinary growth. “In order for the award to fully vest, the Company’s market capitalization would have to grow to $100 billion and the Company would need to achieve $10 billion in Cumulative Performance EBITDA (earnings before interest, taxes, depreciation and amortization).”
Cohen plans to take the same approach should GameStop succeed in its bid for eBay. According to the GameStop CEO’s letter to the eBay board, “Following close, I will serve as Chief Executive Officer of the combined company. I will receive no salary, no cash bonuses, and no golden parachute – I will be compensated solely based on the performance of the combined company.”
That’s called putting your money where your mouth is – Cohen tweeted in February his disdain for the current state of corporate management. One small excerpt of his scathing post about directors, executives, and managers in general: “If the stock goes up, the Insider collects a massive performance bonus. If the stock crashes due to their own incompetence, they are fired with a “Golden Parachute” worth tens of millions. They are gambling with the house’s money, and they never leave the table poorer than they arrived.”
GameStop’s May 3, 2026 press release follows:
GameStop Proposes to Acquire eBay at $125.00 Per Share
GameStop Corp. (NYSE: GME) today submitted a non-binding proposal to acquire 100% of eBay Inc. (NASDAQ: EBAY) at $125.00 per share in cash and stock. The offer represents a 46% premium to eBay’s unaffected closing price on February 4, 2026, the day GameStop started accumulating its position in eBay. GameStop has built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock. GameStop is filing a Schedule 13D and HSR notification tomorrow. The full proposal letter and accompanying materials are available at investor.gamestop.com/ebay.
The proposed offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock, with full shareholder election rights as to consideration type and pro-rata allocation. Aggregate undiluted equity value is approximately $55.5 billion, based on eBay’s most recently disclosed undiluted share count, representing a 27% premium to the 30-day VWAP and a 36% premium to the 90-day VWAP. The transaction is conditioned on customary closing conditions. The cash consideration is expected to be funded from a combination of (i) cash and liquid investments on GameStop’s balance sheet, which totaled ~$9.4 billion as of January 31, 2026, and (ii) third-party acquisition financing, in respect of which GameStop has received a highly-confident letter from TD Securities for up to $20 billion.
eBay spent $2.4 billion on Sales & Marketing in fiscal 2025 while only adding one million net active buyers (134M to 135M – a net increase of less than 0.75%). GameStop will deliver $2 billion of annualized cost reductions within twelve months of closing:
- ~$1.2 billion from Sales & Marketing. More spend is not producing more users on a marketplace with near-universal brand recognition.
- ~$300 million from Product Development. Product Development expense grew 11% in fiscal 2025 against revenue growth of 8%.
- ~$500 million from General & Administrative. Consolidated finance, HR, real estate, legal, IT, and professional services across the combined company.
On cost reductions alone, eBay’s diluted GAAP earnings per share from continuing operations would increase from $4.26 to $7.79 in year one. Beyond cost, GameStop’s ~1,600 US retail locations give eBay a national network for authentication, intake, fulfillment, and live commerce.
Following close, Ryan Cohen will serve as Chief Executive Officer of the combined company.
Mr. Cohen has led GameStop since January 2021. Over that period, GameStop moved from a $381 million net loss in fiscal 2021 to $418 million of net income in fiscal 2025, reduced SG&A by ~$800 million (47%), retired its legacy debt, and raised $4.2 billion of long-term debt at 0% coupon. He owns ~9% of GameStop and receives no salary, no cash bonuses, and no golden parachute. He will be compensated solely based on the performance of the combined company.
The full press release on GameStop contains “Important Information for Investors and Stockholders.” Its letter to the eBay board can be accessed on this page.
