Market AnalysisMay 05, 20262 Min

Meme Stock Giant GameStop Makes $56 Billion Bid For eBay To Build Amazon Challenger Empire

US-based video game retailer GameStop has submitted a non-binding proposal to acquire 100% of eBay in a cash-and-stock deal valued at around $55.5 billion. The offer stands at $125 per share and represents a 46% premium to eBay’s unaffected closing price on February 4, 2026. That is the day GameStop began building its position in the company.

The proposal comes as GameStop continues to carry its identity as a “meme stock,” a label it earned during the 2021 retail trading frenzy that sent its shares soaring.

Building A Rival To Amazon

GameStop said in its statement, “The proposed offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock, with full shareholder election rights as to consideration type and pro-rata allocation.”

Outlining his vision, GameStop chief executive Ryan Cohen told the Wall Street Journal that he believes eBay can be transformed into a far larger competitor to Amazon.com. “EBay should be worth, and will be worth, a lot more money. I’m thinking about turning eBay into something worth hundreds of billions of dollars,” Cohen said.

Cohen added that he has secured a commitment letter from TD Bank for around $20 billion in debt financing. The remaining funding is likely to come from GameStop’s cash reserves of around $9.4 billion.

If eBay resists the offer, Cohen is prepared to launch a proxy fight and take the proposal directly to shareholders. Should the deal succeed, Cohen is expected to become chief executive officer of the combined entity, as stated by GameStop.

Valuation Gap Raises Questions Over Feasibility

Despite the ambition behind the bid, there exists a significant valuation mismatch.

GameStop’s market capitalisation stood at about $12 billion, while eBay’s was around $46 billion as of Friday, May 1, according to LSEG data.

This size disparity raises questions about whether eBay’s board would consider GameStop a credible buyer for a company nearly four times its size.

Cohen’s Past Retail Ambitions

Cohen first hinted in January 2026 that he intended to pursue the acquisition of a publicly traded consumer company larger than GameStop itself. Speaking to CNBC, he described the potential deal as “transformational” and “never been done before within the history of the capital markets.” He added, “It’s gonna be really big. Really big. Very, very, very big,”

Prior to joining GameStop, Cohen originally built his reputation by founding Chewy, an online pet supply retailer that was sold to PetSmart for $3.35 billion in 2017. He later became a central figure in GameStop’s transformation after taking a large stake and publicly criticising its slow shift towards e-commerce in late 2020, arguing it could become the Amazon of gaming retail.

He joined GameStop’s board in January 2021, during the height of the Reddit-driven trading surge from WallStreetBets, which sent the stock up 1,500% in two weeks.

In September 2023, Cohen was appointed the CEO. He has since focused on restoring profitability through aggressive cost-cutting and widespread store closures.

GameStop Plans Major Cost Cuts At eBay

In its offer, GameStop said it plans to cut about $2 billion in annual costs within a year, focusing on what it described as eBay’s heavy spending on sales and marketing. These costs stood at $2.4 billion in fiscal 2025, even as growth in active buyers remained almost flat at under 0.75%. The company said these savings alone could significantly improve eBay’s earnin gs per share, taking it up to $7.79 from $4.26 in the first year, based on standard US accounting rules.

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