GameStop plans to spend $55.5 billion to acquire eBay! "Small snack, big deal" sparks skepticism on Wall Street

GameStop officially proposes a $55.5 billion acquisition of eBay, transforming into a global e-commerce platform. CEO Ryan Cohen plans to leverage the advantages of physical stores and expects to save $2 billion annually.

The largest acquisition proposal in history, Ryan Cohen’s ambitions in the e-commerce landscape

Once a meme stock icon, GameStop shocked the financial markets on May 4, 2026, by formally submitting a non-binding takeover offer to acquire e-commerce giant eBay for approximately $55.5 billion.

Image source: GameStop GameStop officially submits a non-binding acquisition offer, planning to buy eBay for about $55.5 billion

According to the proposal, GameStop intends to acquire eBay at $125 per share, with a transaction structure of 50% cash and 50% in GameStop common stock. This offer represents a 46% premium over eBay’s closing price on February 4, 2026, and a 27% premium based on the 30-day volume-weighted average price. GameStop also disclosed that it currently holds about 5% economic interest in eBay through derivatives and common stock.

This proposal signifies GameStop’s transformation from a single retail channel into a global e-commerce platform, with current CEO Ryan Cohen leading the merged giant. Cohen has demonstrated strong corporate transformation capabilities over the past few years, guiding GameStop from a net loss of $381 million in fiscal year 2021 to a net profit of $418 million in fiscal year 2025.

Financial leverage and funding challenges, Wall Street questions the small giant’s big deal

Capital markets generally hold reservations about such a massive transaction. Currently, GameStop’s market cap is only about $12 billion, while eBay’s exceeds $46 billion. To fund the roughly $55.5 billion acquisition, GameStop plans to utilize approximately $9.4 billion in cash and liquid investments on its balance sheet, supplemented by up to $20 billion in third-party financing.

Although TD Securities has issued a highly positive financing commitment letter, the remaining funding gap still relies on GameStop’s stock value and subsequent equity issuance, raising concerns among investors about potential dilution and excessive debt levels.

Renowned investor Michael Burry immediately liquidated all his GameStop holdings, believing that this financing plan diverges from the original investment logic that favored the company. eBay’s board of directors stated they have received the proposal and will evaluate whether the acquisition can create substantial value for shareholders with the help of financial advisors, recommending shareholders take no action at this stage.

Physical stores boost e-commerce, Ryan Cohen’s $2 billion cost-cutting plan

Ryan Cohen has proposed a clear operational optimization plan, emphasizing that within 12 months of the acquisition, about $2 billion in annualized cost reductions can be achieved. This cost-saving plan targets inefficient spending areas at eBay, including $1.2 billion in marketing expenses, $300 million in product development costs, and $500 million in general administrative expenses.

GameStop pointed out that in fiscal year 2025, eBay spent as much as $2.4 billion on marketing, yet the number of active buyers increased by only 1 million, indicating declining customer acquisition efficiency year over year. In addition to cutting costs, GameStop plans to convert approximately 1,600 physical stores across the U.S. into eBay logistics hubs, offering services such as product authentication, receipt, fulfillment, and live-streamed sales. For categories like collectibles, sneakers, luxury goods, and vintage games, physical stores’ inspection mechanisms can complement the online platform effectively. This integration of online and offline reflects Cohen’s strategic vision to turn eBay into a multi-hundred-billion-dollar enterprise.

Bitcoin payment’s ultimate testing ground, 135 million buyers’ crypto deployment

This acquisition has profound implications for the cryptocurrency industry, especially regarding the potential integration of Bitcoin ($BTC). Since 2025, GameStop has incorporated Bitcoin into its corporate treasury, continuously exploring the value of digital assets. The company previously held 4,710 BTC, valued at approximately $368 million to $377 million, utilizing a covered call strategy on Coinbase Prime to generate income.

If GameStop successfully takes over eBay, with its 135 million active buyers and presence in 190 markets, Bitcoin’s everyday use cases could expand massively. Industry expectations include the possibility of eBay adopting Bitcoin payment options and even using the Lightning Network to handle cross-border remittances for international sellers, addressing high transaction fees.

For eBay’s vast collectibles market, GameStop could also leverage Bitcoin-native tools like Ordinals to create immutable digital certificates, enhancing provenance verification. Although no concrete integration plans have been announced yet, this takeover battle has put Bitcoin’s potential as a global commerce backbone to the test.