GameStop CEO Ryan Cohen Drops a $55.5 Billion Bombshell on eBay
Ryan Cohen once told investors his next big move would be either "genius or totally, totally foolish." On Sunday evening, the world got its answer — and it's a doozy.
GameStop, the meme-stock darling turned cash-rich retailer, has made an unsolicited $55.5 billion bid to acquire eBay. The offer, at $125 per share in a cash-and-stock deal, represents a 20% premium over eBay's Friday close and a 46% premium over its unaffected price on February 4 — the day GameStop quietly started building its stake.
The proposal is structured as 50% cash and 50% GameStop stock, giving eBay shareholders some flexibility on their preferred mix. GameStop says it has a "highly confident" letter from TD Securities for up to $20 billion in debt financing to bridge the gap. But the math is tight: GameStop's market cap is roughly a quarter of eBay's, and the stock component would require shareholder approval, potentially diluting existing GameStop holders significantly.
Cohen has pledged $2 billion in annual cost savings within 12 months of closing, arguing that eBay could transform GameStop from a declining game retailer into a scaled commerce platform. He envisions using GameStop's physical stores as collection and authentication hubs for marketplace transactions, giving the combined company a unique role in the resale economy.
"eBay should be worth — and will be worth — a lot more money," Cohen told the Wall Street Journal. He added that no one is more qualified to run eBay than himself, citing his track record building Chewy into a multi-billion dollar business before selling it to PetSmart. His stated ambition: a $100 billion valuation for GameStop.
Markets reacted immediately. eBay shares surged nearly 12% in after-hours trading, while GameStop rose about 4%. The jump complicates the economics — as eBay's stock climbs toward the $125 offer price, the effective premium shrinks, making the deal less attractive on paper.
eBay's board now faces a genuinely difficult decision. The 46% premium to the unaffected price is hard to dismiss outright. But accepting GameStop stock as half the consideration means eBay shareholders would become major holders of a company whose market cap is a fraction of eBay's own, led by a CEO whose biggest previous achievement was an online pet retailer.
"This is either the boldest pivot in retail history or a masterclass in overreach," said Linda Hartwell, a retail analyst at a New York-based investment firm. "Cohen is betting that the meme-stock crowd will follow him into a serious M&A play. That's a big ask."
Not everyone is convinced. "Let's be real — this is a Hail Mary from a guy who runs a dying video game chain," said Marcus Delgado, a former GameStop store manager who now works in e-commerce. "He's using borrowed money and stock that could tank overnight. If this goes south, it's not just eBay shareholders who get burned. It's the little guys who bought GameStop at $400."
If eBay declines to engage, Cohen has said he will take the case directly to shareholders. That sets up a potential proxy fight that could drag on for months and keep both stocks in play for an extended period. Whatever eBay's board decides in the coming days, this story is far from over.
This story was originally published by TheStreet on May 4, 2026, where it first appeared in the Retail section.