GameStop eBay Bid Revealed

GameStop Corp. (NYSE: GME) submitted a non-binding acquisition proposal to eBay Inc. (NASDAQ: EBAY) on May 3, 2026, launching the GameStop eBay bid and triggering immediate financing, regulatory, and shareholder tests that will determine whether the offer advances.

Proposal Terms, Funding, and Strategic Plan

GameStop proposed to acquire 100% of eBay at $125 per share in a deal split evenly between cash and GameStop common stock, with full shareholder election rights and pro-rata allocation. The offer values eBay’s equity at about $55.5 billion based on an undiluted share count and includes a 46.0% premium to eBay’s unaffected closing price on February 4, 2026. It also represents premiums of 27.0% and 36.0% to the 30-day and 90-day volume-weighted average prices (VWAPs), respectively.

The proposal materials show GameStop held roughly $9.4 billion in cash and liquid investments as of January 31, 2026. The company has about a 5% economic exposure to eBay through direct ownership of 25,000 shares and long positions in put/call option pairs on 23,176,000 shares. These derivatives are cash-settleable until the Hart-Scott-Rodino (HSR) Act condition is met and expire on February 23, 2028. GameStop cited a “highly confident” letter from TD Securities committing up to $20 billion in acquisition financing.

GameStop outlined projected near-term cost reductions expected to deliver about $2.0 billion in annualized savings within one year of closing. These include $500 million from finance, human resources, real estate, legal, IT, and professional services; $1.2 billion from sales and marketing; and $300 million from product development. The company highlighted plans to leverage roughly 1,600 U.S. GameStop stores for authentication, intake, fulfillment, and live commerce. eBay’s fiscal 2025 sales and marketing expenses totaled $2.4 billion, during which the platform added about 1 million net active buyers. GameStop projected a pro forma increase in eBay’s diluted GAAP earnings per share (EPS) from continuing operations, rising from $4.26 in fiscal 2025 to $7.79 in the first year post-close based solely on the cited cost cuts.

eBay confirmed receipt of the proposal in a Form 425 filing on May 4, 2026. The filing described the offer as explicitly non-binding and conditioned on a definitive agreement, financing, regulatory approvals including satisfaction of the HSR Act condition, and shareholder approvals. It noted there had been no prior discussions between the companies.

GameStop plans to submit a Schedule 13D and an HSR notification, initiating regulatory review and emphasizing the importance of the financing letter and clearance process. Whether the proposal advances beyond the initial materials depends on securing financing, timing under the HSR Act, shareholder approvals, and executing the integration plan.

Following the proposal, Ryan Cohen listed personal items on eBay under the username “ryan_5050,” including a mug, a hat, GameStop memorabilia, trading cards, and a smartphone. He publicly framed these listings as helping to fund the offer. On May 7, Cohen reported that eBay suspended his seller account.

The proposal letter states Cohen would be paid on a performance basis with no salary and that he would serve as chief executive officer of the combined company following closing.