GME · GameStop Corp.

GameStop Corp. has formally proposed a transformative acquisition of eBay Inc., offering $125.00 per share for all outstanding common stock in a mix of 50% cash and 50% GameStop shares, valuing the deal at approximately $55.5 billion based on eBay's 444 million basic shares. This represents substantial premiums: 46% to the unaffected closing price of $85.84 on February 4, 2026 (when GameStop began accumulating), 27% to the 30-day VWAP, and 36% to the 90-day VWAP. GameStop has already secured a 5% economic stake through derivatives and beneficial ownership, triggering Schedule 13D and HSR filings, signaling serious intent. Financing appears robust with $9.4 billion in cash and liquid investments as of January 31, 2026, supplemented by a fully committed $20 billion highly confident letter from TD Securities at signing. The strategic rationale centers on $2.0 billion in projected annualized cost synergies within 12 months of close, targeting eBay's FY2025 overhead of $5.2 billion ($2.4B S&M, $1.6B Product Dev, $1.2B G&A), driving pro forma operating margins from 20.5% to 38-40% and diluted GAAP EPS from $4.26 to $7.79 on cost savings alone. Synergies break down to $1.2B S&M (criticizing low buyer growth despite high spend), $0.3B Product Dev, and $0.5B G&A. Beyond costs, GameStop's 1,600 U.S. stores enable authentication, fulfillment, and live commerce for categories like trading cards and refurbished tech. Post-close, Ryan Cohen—credited with GameStop's turnaround from FY2021 $381M loss to FY2025 $418M profit, $800M SG&A cut, and clean capital structure—will lead as CEO with performance-based compensation only. The proposal is non-binding, subject to definitive agreement, shareholder and regulatory approvals (including HSR), with no guarantee of completion. GameStop's Board unanimously backs it, but eBay access to books/records is absent, and information on eBay derives from public sources.