GameStop made an unsolicited $55.5 billion bid for eBay on May 4, 2025, offering $125 per share in a 50% cash and 50% stock deal. The bid includes GameStop's existing 5% economic stake in eBay and would merge the retailer's 1,600 U.S. stores with the online marketplace's 135 million active buyers. Investors reacted immediately: GameStop shares fell while eBay's rose on skepticism about the financing.
How the Deal Would Fund Itself
GameStop plans to cover costs with $9.4 billion from its cash and liquid investments. TD Securities may provide up to $20 billion in third-party financing. The remainder would come from GameStop stock issued as part of the deal structure. This funding mix raised questions after last year's Bitcoin purchase, when the company used $513 million to buy 4,710 coins for its treasury reserves.
Cost-Cutting Promises Meet Past Performance
GameStop claims the acquisition would deliver $2 billion in annualized cost reductions within 12 months. $1.2 billion would come from sales and marketing cuts, $500 million from general and administrative expenses, and $300 million from product development. That projection follows eBay's fiscal 2025 results: the company spent $2.4 billion on sales and marketing but added only 1 million net active buyers. Investors are watching whether the promised savings can justify the premium offered.
Cohen's Take on the Combined Company
Ryan Cohen would lead the merged entity as CEO. He previously transformed GameStop from a $381 million net loss in 2021 to a $418.4 million net profit in fiscal 2025. The integration plan targets collectibles, trading cards, and electronics by using GameStop's physical stores for authentication and fulfillment. Cohen sees these categories as natural bridges between offline retail and online marketplaces.
Bitcoin's Potential New Role
GameStop's Bitcoin holdings could become central to the deal. The company pledged its 4,710 Bitcoin to Coinbase for yield generation after its May 2025 purchase. The proposed merger might make eBay's users a real-world test case for Bitcoin in consumer payments. That possibility remains unproven but aligns with GameStop's treasury strategy. The board's review continues with no deadline set.
