GameStop isn’t the juggernaut it used to be, and that’s why many analysts are confused by its unsolicited offer to acquire eBay.
Shares of eBay were up more than than 4% Monday after the video game retailer announced it made an unsolicited bid of $56 billion to take over eBay.
GameStop announced on Sunday that it had submitted a nonbinding proposal to purchase 100% of eBay for $125.00 per share (50% cash and 50% GameStop common stock), valuing the online auction site at about $55 billion.
In a press release shared on Monday, eBay’s board confirmed the proposal, adding that it will “carefully review and consider” it.
But according to Variety, the math isn’t really mathing, noting that there is a good chance it won’t go through. ]
Per Variety:
GameStop’s market capitalization is currently below $12 billion — less than one-fourth the proposed deal size. Shares of GameStop were down nearly 5% in early trading on Monday on the eBay gambit, as of 10:30 a.m. ET, eBay’s stock was hovering around $109/share, indicating investor skepticism that the deal could get across the finish line.
According to GameStop, it has lined up $20 billion in committed financing from TD Bank. But that still leaves a shortfall for the deal price tag. Meanwhile, GameStop reported $9.4 billion in cash and “liquid investments” as of Jan. 31, 2026, which would include large holdings in Bitcoin.
GameStop’s CEO Didn’t Help Clear Up The Confusion
Ryan Cohen, the current CEO of GameStop, didn’t offer much clarification on why his company is making this move during what was described as a combative interview.
“We are offering half cash, half stock, and we have the ability to issue stock in order to get the deal done. But the full details of the offer are on our website,” Cohen said. “We will see what happens.” During the interview, Cohen acknowledged he would be open if eBay turned the tables and sought to acquire GameStop at a premium because “I have the same obligation to my shareholders.”
GameStop also claims to have acquired a 5% stake in eBay. While the latter’s stock has seen a bump, GameStop’s share price took a hit and was down nearly 5% in early trading on Monday.
Yeah, we have zero faith this will go through.
