GameStop (GME) Soars 6% Following Ryan Cohen's Shocking $56B Takeover Bid for eBay

TLDR

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Ryan Cohen has submitted an unsolicited $56 billion acquisition proposal for eBay, offering $125 per share—approximately 20% above Friday’s closing price.
The proposed transaction consists of equal parts cash and GameStop equity, backed by $20 billion in committed debt financing from TD Securities.
Cohen has accumulated a 5% ownership position in eBay and warns he’ll bypass the board to approach shareholders directly if they reject negotiations.
The GameStop CEO pledges to slash $2 billion in annual expenses within one year and envisions creating an Amazon competitor.
Monday’s premarket session saw eBay spike over 8% while GameStop climbed more than 6%.

In a stunning weekend announcement, GameStop CEO Ryan Cohen delivered an unsolicited acquisition proposal to eBay’s leadership, seeking to purchase the online marketplace giant for approximately $56 billion.

WSJ: GameStop CEO Ryan Cohen says he is offering $56B for eBay, or $125 a share in cash and stock, a 20% premium to Friday’s close.
Cohen says $GME has built a 5% $EBAY stake and has a TD Bank letter for $20B in debt financing. pic.twitter.com/UFB41JSM6k
— Wall St Engine (@wallstengine) May 4, 2026

Cohen’s proposal prices eBay shares at $125 each—representing roughly a 20% markup from Friday’s market close. The news triggered significant premarket gains Monday, with GameStop advancing over 6% and eBay jumping more than 8%.

The financing plan divides evenly between cash and GameStop equity. According to Cohen, GameStop maintains approximately $9.4 billion in cash and marketable securities as of January 31, with the balance financed through debt arrangements and external capital sources.

GameStop Corp., GME

Supporting the ambitious proposal, Cohen has locked in a $20 billion debt commitment from TD Securities, the investment banking arm of TD Bank. Reports from the Wall Street Journal indicate he may also pursue funding from sovereign wealth funds in the Middle East.

Prior to unveiling the bid, GameStop quietly accumulated a 5% ownership stake in eBay using a combination of direct stock purchases and derivative instruments.

Cohen Threatens Proxy Fight

Cohen’s message leaves little room for ambiguity. Speaking with the Wall Street Journal, he stated his readiness to pursue a hostile approach—bringing his proposal straight to eBay’s shareholder base should the board refuse engagement.

He indicated his intention to lead the merged entity as CEO following any successful transaction.

Cohen contends the combination could eliminate $2 billion in eBay’s annual operating expenses within a 12-month timeframe. He identifies excessive expenditures on marketing and sales initiatives as primary areas for reduction.

GameStop’s physical footprint of approximately 1,600 retail locations across the United States would function as an integrated infrastructure for product authentication, order fulfillment, and livestream commerce operations, according to Cohen’s letter to eBay’s directors.

“It could be a legit competitor to Amazon,” Cohen said of a combined eBay and GameStop.

A Bid Nearly Four Times GameStop’s Size

The scale of this proposal is remarkable. eBay carried a market capitalization near $46 billion at Friday’s market close. GameStop’s valuation stood at approximately $12 billion. This disparity makes the transaction one of the more extraordinary M&A proposals in recent corporate history.

Cohen has built a reputation for bold, unconventional strategies—gaining widespread attention during 2021’s meme-stock phenomenon and joining GameStop’s board that same January before eventually ascending to the CEO position and implementing aggressive cost-reduction measures that restored profitability.

Yet fundamental business challenges persist. GameStop’s most recent quarterly results revealed a 14% decline in fourth-quarter sales. The brick-and-mortar video game retail sector continues struggling as consumer preferences shift toward digital distribution channels.

eBay, conversely, has demonstrated stronger recent performance. The platform recently projected second-quarter revenue exceeding analyst expectations, propelled by growth in collectibles, automotive parts, and livestream auction formats.

Year-to-date performance through this announcement showed GameStop and eBay shares advancing 32.1% and 19.5% respectively.

eBay has not yet issued a public statement regarding Cohen’s acquisition proposal.