eBay Stock Surges as GameStop Drops $56 Billion Bombshell—Can Ryan Cohen Actually Pull This Off?

eBay shares rose sharply after GameStop unveiled an unsolicited $56 billion (£41.2 billion) takeover offer, in one of the most unexpected corporate moves of the year.

The bid, confirmed by GameStop chief executive Ryan Cohen, has triggered investor speculation over whether the deal can realistically succeed and whether it could reshape competition with Amazon.

Market Reacts As eBay Stock Jumps On Takeover News

eBay's stock climbed in after-hours trading following reports that GameStop has made an unsolicited offer to acquire the online marketplace for around $125 (£92) per share. The offer represents a premium of roughly 20% above eBay's most recent closing price, prompting an immediate surge in investor interest.

GameStop shares also moved higher as traders reacted to the takeover offer. Market sentiment has been driven largely by speculation surrounding the proposed acquisition, with analysts warning that volatility may persist as further details of the deal emerge.

Inside The $56 Billion GameStop Acquisition Proposal

According to The Wall Street Journal, GameStop chief executive Ryan Cohen has proposed an unsolicited offer to acquire eBay in a deal valued at approximately $56 billion (£41.2 billion). The company has already built a roughly 5% stake in eBay ahead of the bid, signalling a longer-term strategic position.

The financing structure includes a reported $20 billion (£14.7 billion) debt commitment from TD Bank, alongside GameStop's existing cash reserves of around $9 billion (£6.6 billion). However, a significant funding gap remains, raising questions over how the full acquisition would be completed.

eBay, which was valued at around $46 billion (£33.8 billion) before the news broke, has not publicly responded to the offer at the time of writing.

Ryan Cohen's Strategy To Build A Rival To Amazon

Cohen wants to position eBay as a 'legit competitor to Amazon' and believes the company could be worth significantly more, potentially reaching a valuation in the hundreds of billions.

He outlined plans to integrate GameStop's physical store network with eBay's online marketplace, using retail locations as hubs for collecting, verifying and shipping items sold through the platform. The approach focuses on overlapping categories such as trading cards, collectibles and retro gaming products.

He also pointed to live commerce, where products are sold through real-time video streams, as a potential growth area.

Analysts Question Scale And Execution Risks

Analysts have raised concerns over the scale of the proposed deal, noting that GameStop, valued at around $12 billion (£8.8 billion), is significantly smaller than eBay, which makes the transaction highly leveraged and complex.

Market observers also highlight potential integration risks in combining a gaming retailer with a global e-commerce platform. eBay has been pursuing its own turnaround strategy, including cost reductions and increased use of artificial intelligence tools to streamline operations.

The company recently reported an 18% rise in gross merchandise volume, signalling continued strength in platform activity despite broader market uncertainty.

Potential For Proxy Battle As Pressure Builds

If eBay rejects the offer, Cohen has indicated he is prepared to escalate the situation through a proxy fight, potentially appealing directly to shareholders to influence board decisions.

The timing could prove significant, as the window for director nominations ahead of eBay's annual meeting in June has already closed.

This raises the possibility of a prolonged corporate battle if negotiations do not progress, with investors closely watching for the company's formal response to the unsolicited bid and any competing proposals that may emerge.