According to the following reports: game stop CEO Ryan Cohen, who plans to buy eBay, has confirmed that he made an unsolicited takeover bid for the company based on his recent return. This bid for eBay raises some questions and quite a bit of curiosity, as GameStop itself is not in a very good position financially and even eBay ranks higher in the market.
GameStop has been in a bit of a strange position over the past decade. The once-popular video game retailer has struggled to keep pace with the growing digital-only video game industry and the retail giant that is Amazon, forcing it to pivot to selling licensed merchandise and baseball cards. Recently, GameStop has even dipped its toes into reselling retro games at some of its stores. As of 2023, the company has new leadership led by Ryan Cohen, dubbed GameStop's “Meme King” following the stock short-selling frenzy in 2021. Meanwhile, eBay is also experiencing its fair share of financial struggles as companies like Amazon continue to put pressure on the resale market. As eBay looks to improve its bottom line, sellers have begun reporting a drop in sales due to rising fees and falling profit margins.
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GameStop wants to buy eBay at a premium.
Now, GameStop CEO Ryan Cohen has announced his intention to acquire eBay for $125 per share, for a total of $55.5 billion. According to GameStop's official investor announcement, this price is 46% higher than eBay's closing price on February 4, 2026, when GameStop first acquired the company. For reference, during the same period, GameStop's value was about $25 per share and its market capitalization was about $11 billion. Cohen said a merger between GameStop and eBay could create a serious competitor to Amazon, which has been a common competitor for both companies.
Rearranges covers into correct US release order.
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Rearranges covers into correct US release order.
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EBay confirmed it received an unsolicited, non-binding offer from GameStop and said it had no conversations with the company prior to the offer. eBay's Board of Directors will review the proposal and evaluate what is best for eBay and its shareholders moving forward, and is urging shareholders to take no action at this time. But if GameStop's offer is rejected, they won't take no for an answer. If eBay rejects the deal, Cohen has said he is prepared to launch a hostile bid aimed at valuing the company in the hundreds of billions of dollars. GameStop shares were down 2% on this news, while eBay was up 5%.
It has been clear for several years that Amazon has taken significant market share from both GameStop and eBay. Amazon's logistics, convenience and Prime membership have made it much more attractive for customers to buy from Amazon than from GameStop or eBay, both of which have seen their shopping experiences decline in recent years. But Cohen's attempt to merge GameStop and eBay to take over the retail giant called Amazon seems a bit confusing. The deal would saddle GameStop with massive debt and merge two companies that have already been fighting an uphill battle against a changing consumer market for seemingly weak reasons for a decade.
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Ryan Cohen says the merger will allow GameStop stores to serve as authentication centers for items sold on eBay, such as trading cards and retro games. GameStop and eBay could potentially dominate the vintage collectibles and retro gaming market, which is a resale stronghold for eBay and a natural synergy with GameStop, but it's still a niche market that's unlikely to generate significant sales for either company. The future of GameStop is anyone's guess. Because the company has proven time and time again that it refuses to go down quietly.
