GameStop has launched a $55.5 billion unsolicited bid for eBay, offering $125 per share in a deal representing a 46% premium. The video game retailer already built a 5% stake in eBay and structured the offer as half cash, half stock. CEO Ryan Cohen would lead the combined company, claiming the merger could cut costs and boost earnings through GameStop's 1,600 US physical stores.

Cohen believes GameStop's storefront network could provide eBay with a "national network for authentication, intake, fulfillment and live commerce." The offer comes with $20 billion in debt financing commitment from TD Bank. eBay reported 18% growth in gross merchandise volume to $22.2 billion in Q1, with profits climbing to $512 million. The "recommerce" group has focused on collectibles and plans to acquire Depop for $1.2 billion.

eBay has long struggled to respond to changing consumer habits and intense competition from Amazon and newer platforms. GameStop, which saw its value skyrocket during the 2021 meme-stock craze, has remained substantially higher than pre-craze levels. eBay's market cap stands at $46 billion, while GameStop is valued at approximately $11.9 billion. Cohen has threatened a proxy fight if eBay rejects the offer.