GameStop (GME) Stock Surges 6% After Ryan Cohen’s Stunning $56B eBay Takeover Bid

Key Takeaways

• Ryan Cohen has proposed acquiring eBay for approximately $56 billion, offering $125 per share — representing a premium of roughly 20% over Friday’s closing price.
• The proposed transaction would be financed through equal parts cash and GameStop equity, backed by a committed $20 billion debt facility from TD Securities.
• Cohen has accumulated a 5% ownership position in eBay and indicates readiness to pursue a hostile takeover through direct shareholder engagement if eBay’s board refuses negotiations.
• The GameStop CEO pledges to extract $2 billion in annual cost savings within the first year and envisions creating an Amazon competitor.
• Market reaction saw eBay shares soar more than 8% in premarket Monday trading, while GameStop stock climbed over 6%.

In a bold Sunday announcement, GameStop CEO Ryan Cohen delivered an unsolicited acquisition proposal to eBay’s board of directors, offering approximately $56 billion for the online marketplace giant.

Cohen’s proposal prices eBay shares at $125 each — a significant 20% premium above Friday’s closing market price. Market participants responded enthusiastically Monday morning, pushing GameStop shares up more than 6% while eBay stock jumped over 8% in premarket activity.

The financing blueprint calls for equal components of cash and GameStop equity. According to Cohen, GameStop holds approximately $9.4 billion in cash and liquid securities as of January 31, with remaining funds sourced through debt instruments and outside capital.

GameStop Corp., GME

Supporting the aggressive proposal, Cohen has arranged a committed $20 billion debt facility through TD Securities, the investment banking arm of TD Bank. Additional financing from Middle Eastern sovereign wealth entities remains under consideration, per reporting from the Wall Street Journal.

Prior to unveiling the bid, GameStop quietly accumulated a 5% interest in eBay through direct stock purchases and derivative positions.

Cohen Signals Willingness to Launch Hostile Campaign

Cohen has indicated he won’t accept rejection without a fight. Speaking with the Wall Street Journal, he expressed readiness to bypass eBay’s board entirely — presenting the acquisition proposal directly to eBay’s shareholder base if directors refuse meaningful discussions.

Should the transaction complete, Cohen confirmed his intention to lead the merged entity as chief executive.

Cohen’s strategic vision includes eliminating $2 billion in annual operating expenses within the first twelve months post-merger. He specifically identifies eBay’s sales and marketing expenditures as ripe for significant reduction.

GameStop’s extensive network of approximately 1,600 retail locations across the United States would function as infrastructure for product authentication, order fulfillment, and live commerce operations, according to Cohen’s communication with eBay’s board.

A Transaction Nearly Quadruple GameStop’s Valuation

The scale of this proposal is remarkable. eBay carried a market capitalization near $46 billion at Friday’s market close. GameStop’s valuation stood at approximately $12 billion. This disparity makes Cohen’s bid one of the more unusual major acquisition attempts in recent corporate history.

Cohen’s unconventional approach aligns with his established pattern — he gained national attention during the 2021 retail trading phenomenon and joined GameStop’s board that same January, subsequently ascending to the CEO role while implementing aggressive cost reductions that restored corporate profitability.

Yet GameStop’s core business continues struggling. The company disclosed a 14% year-over-year revenue decline in its fourth quarter last month. The brick-and-mortar gaming retail sector faces persistent challenges as consumers increasingly favor digital distribution.

Conversely, eBay demonstrated stronger operational momentum. Last week, the company issued second-quarter revenue guidance exceeding analyst expectations, propelled by strength in collectibles, automotive parts, and livestream auction formats.

Year-to-date performance prior to this development showed GameStop and eBay shares advancing 32.1% and 19.5% respectively.

eBay has not yet issued a statement regarding Cohen’s acquisition proposal.

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