GameStop Proposes $55.5 Billion Acquisition of eBay in Bold Move

The cash portion of the deal would be funded by $9.4 billion from GameStop’s balance sheet, supplemented by $20 billion in acquisition financing from TD Securities, which expressed high confidence in securing the funds. GameStop has also built a 5% economic stake in eBay through derivatives and common stock purchases, signaling its commitment to the deal.

Ryan Cohen, who previously led Chewy to success before joining GameStop, is prepared to escalate the bid directly to eBay shareholders if the company’s board resists. "There is nobody who is more qualified, based on my experience, to run the eBay business," Cohen told *The Wall Street Journal*.

Strategic Rationale and Potential Benefits

GameStop estimates that the acquisition could yield $2 billion in annualized cost savings within a year of closing, significantly boosting profitability. These savings could increase diluted earnings per share from $4.26 to $7.79, according to the company’s projections.

The deal also carries substantial incentives for Cohen personally. If GameStop’s market capitalization reaches $100 billion and achieves $10 billion in cumulative performance EBITDA, he would be eligible for a $35 billion pay package.

eBay, meanwhile, has been executing a successful turnaround strategy, with its shares appreciating by more than 50% over the past year. The company’s recent performance adds complexity to GameStop’s bid, as shareholders may weigh the premium against eBay’s independent growth potential.

The proposed acquisition marks one of the most audacious takeover attempts in recent corporate history, pitting a resurgent but smaller retailer against a well-established e-commerce giant. Whether eBay’s board and shareholders will embrace the offer remains uncertain, but Cohen’s aggressive approach ensures the battle will be closely watched.