GameStop has launched a stunning $55 billion bid to acquire eBay, offering $125 per share in a mix of cash and stock. The proposal would create a combined e-commerce and retail giant with Ryan Cohen as CEO. This represents a 20% premium to eBay's pre-bid share price. GameStop already holds a 5% stake in the online marketplace, positioning itself for what could be one of the most unlikely mergers in recent retail history.

Analysts question how GameStop, with just $11 billion market cap and $9 billion in cash, could finance the acquisition of eBay's $46 billion valuation. The company has secured a $20 billion lending commitment from TD Securities, but doubts remain about the feasibility of combining a specialty retailer with a broad online marketplace. Morgan Stanley researchers expressed skepticism without more details on proposed financing.

The timing raises questions as eBay has been executing a successful turnaround since early 2024, with shares up 137%. The online marketplace has focused on younger shoppers and acquired Depop for $1.2 billion. Cohen, founder of Chewy, has a history of making aggressive investments that dramatically move stock prices. His previous stake in Bed Bath & Beyond briefly sent shares up 70% before he sold out five months later.