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Video game retailer GameStop has unveiled a $55.5bn (£41bn) takeover approach for eBay, with its chief executive warning the unsolicited proposal could escalate into a hostile pursuit if dismissed by the target's board.
The offer, pitched at $125 per share and split evenly between cash and stock, represents a striking attempt by a company far smaller than the online marketplace it seeks to acquire. GameStop entered the bid with a valuation near $12bn, compared with eBay's roughly $46bn market worth.
At the centre of the push is Ryan Cohen, who argues that eBay has untapped potential and could dramatically expand under his leadership. In remarks to the Wall Street Journal, he suggested the platform could evolve into a serious rival to Amazon, with ambitions reaching into the hundreds of billions in value.
Cohen has already built a roughly 5% stake in eBay and is reportedly prepared to bypass its board and appeal directly to shareholders. Financing for the deal includes a $20bn loan commitment from TD Securities, though additional backing from external investors remains a possibility.
Analysts, however, have voiced scepticism. Differences in business models and GameStop's comparatively limited balance sheet have led some to question whether the deal is viable. Others note that combining the companies could burden eBay with additional debt while offering uncertain strategic benefits.
GameStop rose to prominence during the pandemic-era meme stock surge, when retail investors drove its shares to extraordinary highs. Since then, the company has closed hundreds of stores but retained about 1,600 outlets across the US.
Cohen believes those physical locations could underpin a transformation of eBay's operations, acting as hubs for authentication, fulfilment and livestreamed commerce. Staff already experienced in grading hardware and collectibles could support sellers, while stores could double as venues for digital auctions and events.
Despite the ambitious vision, doubts linger over whether the proposal will progress beyond its early stages.
