GameStop has made a $55.5 billion offer to acquire eBay, the online marketplace giant. The video game retailer already owns a 5% stake in the company, according to people familiar with the matter. GameStop plans to fund the deal with cash on hand and third-party financing.
A $55.5B bid for eBay
The unsolicited offer, which values eBay at roughly $55.5 billion, marks one of the largest potential takeovers in the e-commerce space. GameStop's stake of about 5% gives it a foothold as it seeks to merge the two retail platforms. Neither company has publicly commented on the bid.
The stake that preceded the offer
GameStop built its 5% stake in eBay over recent months, buying shares on the open market. That position, worth roughly $2.8 billion at eBay's current stock price, signals the retailer's long-term interest. The stake also means GameStop is already one of eBay's largest shareholders.
Funding the acquisition
To finance the $55.5 billion deal, GameStop plans to use its own cash reserves and secure additional third-party financing. The company had about $1.2 billion in cash and equivalents as of its most recent quarterly report, though it has not disclosed how much debt or equity financing it would raise. The offer includes a mix of cash and stock, according to sources.
What happens next
EBay's board is expected to review the offer in the coming weeks. GameStop has not yet received a formal response. Any deal would require regulatory approval in the U.S. and Europe, a process that could take months. For now, the fate of the bid rests on whether eBay's leadership sees a combination as viable.
