It's not every day that a video game retailer tries to buy one of the internet's oldest marketplaces. But here we are. GameStop Corp. (GME) — yes, the meme stock darling — has made a $55.5 billion bid to acquire eBay Inc. (EBAY), and its chairman Ryan Cohen is threatening to take the fight directly to shareholders if the board says no.

eBay shares surged 9% in premarket trading Monday, hitting a new 52-week high, while GameStop fell 3%, as investors reacted to the proposal. The bid, announced Sunday, is for $125 per share in a mix of cash and stock — a 46% premium to eBay's unaffected closing price on Feb. 4, 2026, when GameStop began quietly building its position.

GameStop has accumulated a 5% economic stake in eBay through derivatives and direct ownership, and plans to file a Schedule 13D and Hart-Scott-Rodino (HSR) notification. This isn't a passive investment; it's a full-on takeover attempt.

Deal Structure and Financing

The proposed consideration is 50% cash and 50% GameStop common stock, with shareholder election rights subject to pro-rata allocation. The transaction implies an aggregate undiluted equity value of about $55.5 billion, representing a 27% premium to eBay's 30-day VWAP and a 36% premium to its 90-day VWAP.

GameStop expects to fund the cash portion using roughly $9.4 billion in cash and liquid investments as of Jan. 31, 2026, along with third-party financing. The company said it has received a "highly-confident" letter from TD Securities for up to $20 billion. So they've got the backing, at least in principle.

Cost Reduction Strategy and Synergies

GameStop outlined plans to deliver $2 billion in annualized cost reductions within 12 months of closing, including $1.2 billion from Sales & Marketing, $300 million from Product Development, and $500 million from General & Administrative functions. The logic? eBay spent $2.4 billion on Sales & Marketing in fiscal 2025 while adding only one million net active buyers — from 134 million to 135 million. That's a lot of spending for not much growth.

GameStop said these reductions alone could lift eBay's diluted GAAP EPS from $4.26 to $7.79 in the first year. They also pointed to their roughly 1,600 U.S. retail locations as a network for authentication, fulfillment, and live commerce — turning GameStop stores into eBay hubs, essentially.

Leadership and Track Record

Following the transaction, Ryan Cohen is expected to serve as CEO of the combined company. Cohen has led GameStop since January 2021, overseeing a remarkable turnaround: from a $381 million net loss in fiscal 2021 to $418 million in net income in fiscal 2025. The company also reduced SG&A by about $800 million, retired legacy debt, and raised $4.2 billion in long-term debt at a 0% coupon. Not bad for a company that was written off as a brick-and-mortar dinosaur.

Cohen owns about 9% of GameStop and "receives no salary, no cash bonuses, and no golden parachute," with compensation tied solely to performance. That's a pretty strong alignment with shareholders. The proposed transaction is subject to customary closing conditions.

Unsolicited Bid Sets Stage For Potential Proxy Battle

A Wall Street Journal report on Sunday said Cohen has made an unsolicited $56 billion bid for eBay, outlining plans to position the company as a stronger rival to Amazon.com, Inc. (AMZN). Cohen said he is prepared to launch a proxy fight and appeal directly to shareholders if the offer is rejected. So this could get messy — and interesting.

eBay Technical Analysis

eBay is pressing into the upper end of its 52-week range after already setting a 52-week high in April, which is consistent with buyers defending the longer-term uptrend. The stock is trading 12.5% above its 20-day simple moving average (SMA) and 24.4% above its 100-day SMA, a setup that typically points to strong short- and intermediate-term trend control by buyers.

The moving average convergence divergence (MACD), a trend/momentum measure, is below its signal line and the histogram is negative, which leans toward momentum cooling even as price remains elevated. In everyday terms, MACD being under its signal line can mean the rally is still intact, but it's losing some "push" compared with prior weeks.

The stock is up 48.02% over the last 12 months, which matches the idea that dips have been bought and the longer trend has stayed constructive. With price now above the prior 52-week high ($107.34), traders often watch to see if that former ceiling starts acting like a floor.

• Key Resistance: $113.50 — a near-term ceiling where follow-through buying often gets tested.
• Key Support: $107.50 — a prior breakout zone that can matter if the move fades.

Price Action: eBay shares were up 9.05% at $113.49 during premarket trading on Monday. The stock is trading at a new 52-week high. GameStop shares were down 3.05% at $25.72.