The gaming retailer plans to fund the acquisition with $9.4 billion in cash and liquid investments on hand as of January 31, supplemented by up to $20 billion in third-party financing from TD Securities. GameStop projects $2 billion in annual cost savings within twelve months, primarily by cutting what it views as inefficient spending at eBay.
The company pointed to eBay's $2.4 billion in sales and marketing expenditures during fiscal 2025, which added only one million net active buyers—growing the user base from 134 million to 135 million, an increase of less than 0.75%.
GameStop said it would leverage its 1,600 U.S. retail locations to create a national network for authentication, intake, fulfillment, and live commerce services for eBay's platform.
GameStop CEO Ryan Cohen laid out an ambitious vision for the potential acquisition, which values eBay at a 46% premium to its February 4 closing price, which is when GameStop began to amass shares in the e-commerce giant. The gaming retailer now holds a 5% stake in eBay.
The acquisition bid represents a dramatic transformation for GameStop under Cohen, who previously founded pet supplies company Chewy and sold it to PetSmart for $3.35 billion in 2017. Since taking the helm, Cohen has engineered a turnaround at GameStop, swinging the company from a $381 million net loss in fiscal 2021 to $418 million net income in fiscal 2025.
During that period, GameStop cut selling, general, and administrative expenses by $800 million—a 47% reduction. Cohen, who owns a 9% stake in GameStop and receives no salary or cash bonuses, is now positioning the $11 billion company to acquire eBay, valued at around $46 billion before the acquisition news.
Cohen has a personal incentive to complete the deal, according to reports, as a recently instituted compensation structure could award him stock options valued upwards of $35 billion if GameStop's market cap hits a $100 billion valuation while meeting profit benchmarks.
The proposed acquisition marks the latest chapter in GameStop's evolution from meme stock phenomenon to serious hopeful corporate acquirer.
