GameStop bids $55.5 billion for eBay, Cohen pitches cost cuts and stock-cash deal

GameStop’s surprise $55.5 billion bid for eBay has become a test of whether meme-stock loyalty can carry a public company into a real takeover, or whether Ryan Cohen is again asking investors to trust a turnaround story before the financing is fully nailed down. The company said it submitted a non-binding proposal on May 3 to buy all of eBay at $125 a share, with the offer split evenly between cash and GameStop stock and backed by full shareholder election rights. GameStop said it had already amassed a 5% economic stake through derivatives and common stock, had about $9.4 billion in cash and liquid investments as of Jan. 31, and held a highly confident letter from TD Securities for up to $20 billion in debt financing.

The math still leaves a large gap, and the rationale is as much about cost discipline as expansion. GameStop said it expected about $2 billion in annualized savings within 12 months of closing, with cuts coming from marketing, product development and overhead. Cohen would become chief executive of the combined company if the deal closes, and GameStop said he would take no salary, no cash bonus and no golden parachute, only performance-based compensation.

eBay responded quickly, saying it had received the unsolicited proposal but had no discussions with, or outreach from, GameStop before the bid arrived. The board told shareholders to take no action while it reviewed the offer with financial and legal advisers, and said it would focus on the value of the stock portion and GameStop’s ability to deliver a binding proposal. That scrutiny matters because eBay is not a distressed asset: the company said it had 135 million buyers across 190 markets and nearly $80 billion in gross merchandise volume in 2025.

Investors were not convinced. After Cohen appeared on CNBC and offered limited clarity on financing, saying GameStop could issue stock and directing viewers to the company website for details, eBay shares rose only about 5% to around $109, still well below the $125 offer price. GameStop stock fell about 10%, a sharp signal that the market saw execution risk, not inevitability. Michael Burry deepened that skepticism by selling his entire GameStop stake after the announcement, saying the leverage changed the investment case.

Cohen’s supporters can point to a real operating record: since he took over in January 2021, GameStop said it moved from a $381 million net loss in fiscal 2021 to $418 million in net income in fiscal 2025, cut SG&A by about $800 million, retired legacy debt and raised $4.2 billion of long-term debt at a 0% coupon. But the eBay bid shows the next phase is different. Cost cuts are one thing; proving that charisma can finance, govern and integrate a $55.5 billion takeover is another.