Key facts
- GameStop has pledged to pursue its proposed takeover of eBay.
- The offer is for $125 per share in cash and stock.
- GameStop expects to generate over $600 million in adjusted EBITDA in fiscal 2026.
- TD Securities has committed $20 billion to fund the deal.
- GameStop currently holds a 5% stake in eBay.
GameStop has pledged to pursue its proposed takeover of eBay, offering $125 per share in a combination of cash and stock for the online marketplace. The video game retailer also indicated it expects to generate over $600 million in adjusted earnings before interest, taxes, depreciation, and amortization in fiscal year 2026, a significant increase from the $345.4 million reported in fiscal 2025.
GameStop CEO Ryan Cohen communicated the offer in a letter to eBay's chairman, stating the company already holds a 5% stake in eBay. TD Securities has committed $20 billion to help finance the deal. eBay has stated it will carefully review the unsolicited proposal to determine the best course of action for its shareholders.
The Wall Street Journal reported that Cohen is prepared to launch a hostile bid if eBay rejects the offer. Cohen believes eBay could become a "legit competitor to Amazon" and envisions its value increasing to hundreds of billions of dollars. GameStop, with a market capitalization of nearly $12 billion, is considerably smaller than eBay, which is valued at approximately $49 billion.
In early trading following the news, GameStop shares fell 2%, while eBay's stock rose 5%.