GameStop has proposed to acquire all of eBay’s common stock at $125 a share, valuing the deal at about $55.5 billion in aggregate undiluted equity value. The offer is split 50% cash and 50% GameStop stock, with shareholders able to choose the mix, and it carries a 46% premium to eBay’s closing price on Feb. 4, 2026, a 27% premium to the 30-day VWAP and a 36% premium to the 90-day VWAP.
The company said it has accumulated a 5% economic stake in eBay through derivatives and common stock. It plans to file a Schedule 13D and HSR notification.
GameStop said it intends to cut $2 billion in annualized costs within 12 months of closing, including $1.2 billion from sales and marketing, $300 million from product development and $500 million from general and administrative expenses. It pointed to eBay’s fiscal 2025 sales and marketing spending of $2.4 billion and said eBay added 1 million net active buyers, rising from 134 million to 135 million.
GameStop also highlighted its own turnaround, saying it moved from a $381 million net loss in 2021 to $418 million in net income, while SG&A fell by about $800 million, or 47%.
On the cost cuts alone, GameStop said eBay’s diluted GAAP earnings per share from continuing operations would rise from $4.26 to $7.79 in year one.
GameStop said it had about $9.4 billion in cash and liquid investments as of Jan. 31, 2026. It said the cash portion of the deal would be funded from its balance sheet and third-party equity and debt financing, with financing to be fully committed at execution of definitive documentation. The market has reacted to these announcements by moving the company's shares -0.24% to a price of $24.95. Check out the company's full 8-K submission here.
