NEW YORK CITY, New York: Shares of eBay surged in premarket trading on Monday after Ryan Cohen, through GameStop, made an unsolicited bid to acquire the online marketplace in a deal valued at about US$56 billion.
GameStop has offered $125 per share in cash and stock, valuing the equity at roughly $55 billion. The company said it sees eBay as a platform to expand its reach and compete more directly with Amazon.
"EBay has the second largest commerce franchise, and there's a big opportunity to do something much larger," Cohen said in a CNBC interview.
GameStop said its approximately 1,600 U.S. stores could be repurposed as drop-off and shipping hubs for eBay transactions. One proposal also includes hosting live sales broadcasts from GameStop locations featuring eBay products.
EBay confirmed it had received the proposal but said it had not previously been in discussions with GameStop or received any outreach before the bid. The company said its board, along with financial and legal advisors, would review the offer and decide on the next steps.
GameStop disclosed that it began building a stake in eBay in February and now holds about 5 percent of the company. It also outlined plans to cut costs, noting that eBay spent $2.4 billion on sales and marketing in fiscal 2025 while adding only one million net active buyers. GameStop said it aims to achieve $2 billion in annualized cost reductions within a year of completing the deal.
Cohen, who owns about nine percent of GameStop, would become CEO of the combined company and be compensated based on its performance. He took over as GameStop's CEO in 2023, after a period of leadership turnover as the company struggled to adapt to changes in the gaming industry.
GameStop gained widespread attention in 2021 as one of the most prominent meme stocks, with its share price surging dramatically after retail investors drove a trading frenzy. While the stock has declined from those highs, it remains up more than 30 percent this year.
Following news of the bid, eBay shares rose more than seven percent in premarket trading, while GameStop's stock fell nearly three percent.
