Shares of online retail giant eBay were up more than 4% Monday after GameStop, the video-game and fandom-culture retailer, launched an unsolicited $56 billion takeover bid.
On Sunday, GameStop announced that it submitted a nonbinding proposal to acquire 100% of eBay at $125.00 per share in cash and stock (comprising 50% cash and 50% GameStop common stock) — valuing eBay at about $55.5 billion.
The board of eBay acknowledged receipt of the unsolicited offer, saying in a press release Monday that it will “carefully review and consider” the proposal.
But wait — how does the math work?
GameStop’s market capitalization is currently below $12 billion — less than one-fourth the proposed deal size. Shares of GameStop were down nearly 5% in early trading Monday on the eBay gambit.
According to GameStop, it has lined up a $20 billion financing commitment TD Bank. But that still leaves a shortfall for the deal price tag. Meanwhile, GameStop reported $9.4 billion in cash and “liquid investments” as of Jan. 31, 2026, which would include large holdings in Bitcoin.
GameStop CEO Ryan Cohen appeared on CNBC’s “Squawk Box” Monday morning to discuss the eBay proposal — and, according to a CNBC recap, “Cohen offered limited clarity on the structure during what at times was a combative and awkward interview, repeatedly directing viewers to the company’s website for details.”
Cohen said on CNBC, “We are offering half cash, half stock, and we have the ability to issue stock in order to get the deal done. But the full details of the offer are on our website.” He added: “We will see what happens.”
According to GameStop, the company has accumulated a 5% economic stake in eBay “through derivatives and beneficial ownership of common stock.”
Cohen has led GameStop as CEO since January 2021. Since then, GameStop swung from a $381 million net loss in fiscal 2021 to $418 million in net income in fiscal 2025. Cohen owns 9% of GameStop and “receives no salary, no cash bonuses and no golden parachute,” the company says. If GameStop succeeds in merging with eBay, Cohen would become CEO and “will be compensated solely based on the performance of the combined company,” GameStop said in a statement.
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