GameStop CEO Ryan Cohen Proposes Ambitious USD 56 Billion Takeover of eBay to Rival Amazon

GameStop has launched an audacious unsolicited bid to acquire the e-commerce giant eBay in a deal valued at approximately USD 56 billion (GBP 40.9 billion). The proposal, announced on Sunday, represents a significant move by GameStop’s chief executive, Ryan Cohen, to create a retail powerhouse capable of competing with Amazon.

The cash and stock offer values eBay at USD USD per share, representing a 20% premium over its closing price on Friday. In a bold move that highlights the scale of his ambition, Cohen stated he is prepared to take the offer directly to shareholders if the eBay board remains unreceptive. Sun Pharma To Acquire Organon in USD 11.75 Billion Deal, Marks Biggest Indian Pharma Acquisition Ever.

GameStop CEO Ryan Cohen's eBay Takeover Strategy

In a formal letter to the eBay board, Cohen outlined plans to achieve USD 2 billion in cost savings within the first year of the merger. A substantial portion of these cuts, approximately USD 1.2 billion, would target eBay’s sales and marketing operations. GameStop argued that high spending in these areas has failed to deliver a significant increase in users for a brand that already enjoys near-universal recognition.

Under the proposed terms, Cohen would serve as the chief executive of the combined company. Demonstrating his commitment to the firm's long-term success, he would receive no salary, cash bonuses, or golden parachute, with his compensation based solely on the performance of the combined entity.

GameStop eBay Acquisition Financing

The bid is considered highly unconventional as GameStop, with a market valuation of roughly USD 12 billion, is attempting to buy a company nearly four times its size. To finance the USD 56 billion deal, GameStop has secured a commitment letter from TD Securities for approximately USD 20 billion in debt. Cohen also indicated he might seek further backing from external investors, including Middle Eastern sovereign wealth funds.

GameStop has already established a 5 percent stake in eBay through shares and derivatives. Cohen believes that integrating eBay’s online platform with GameStop’s network of 1,600 physical U.S. stores would provide a national infrastructure for fulfillment, intake, and "live commerce".

Meme Stock History and Context

GameStop rose to international prominence in 2021 as the primary focus of the "meme stock" phenomenon. Driven by retail investors on platforms like Reddit, the company's share price saw extreme volatility as individual traders bet against professional hedge funds. This surge in value helped transform the company from a struggling brick-and-mortar retailer into a firm with the capital to pursue major acquisitions. OpenAI Agrees To Buy Windsurf AI Coding Tool for USD 3 Billion, Marking Its Largest Acquisition Yet: Report.

Since becoming CEO in 2023, Ryan Cohen has pushed for aggressive cost-cutting measures that briefly returned the company to profitability. However, the retailer continues to face challenges from the industry-wide shift toward digital downloads, reporting a 14 percent drop in revenue in its most recent quarterly results.

(The above story first appeared on LatestLY on May 04, 2026 11:11 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).