Ryan Cohenactivist billionaire investor and CEO of GameStophas made a $56 billion bid to buy eBaymarking his most ambitious deal to date. In a letter sent yesterday (May 3), GameStop offered $125 per share in a cash and stock transaction, a roughly 20 percent premium to eBay’s closing price last week and a 46 percent premium to its close on Feb. 4, the day GameStop began building a 5 percent stake in the company. If completed, Cohen would lead the combined company as CEO.
Cohen is no stranger to bold bets. He founded a pet supply retailer chewable in 2011 and sold to PetSmart for $3.35 billion in 2017. He later rose to prominence during the meme’s stock rally in 2020, taking a stake in GameStop, joining its board in 2021 and becoming CEO in 2023. Under his leadership, GameStop reported net income of $418 million in 2020. aggressive cost cutting. He also has took activist positions at companies like Nordstrom AND Bed Bath & Beyondfrom the latter he came out with a profit of 68 million dollars.
Cohen’s pitch for eBay focuses on similar cost discipline. GameStop says it can cut $2 billion in annual spending on sales and marketing, product development and general administrative functions. The company also argues that its 1,600 US retail locations can support eBay’s operations in authentication, fulfillment and direct commerce.
Where will the money come from?
The proposal has raised immediate questions about funding. GameStop, with a market capitalization of about $11 billion, has roughly $9 billion in cash and a reported $20 billion financing letter from TD Gap, but that still leaves a significant shortfall. eBay shares rose 5 percent on the news, while GameStop fell 8 percent amid investor skepticism. “We give the deal a relatively low probability of success”, analyst Baird Colin Sebastian wrote in a note.
Cohen declined to provide detailed financing plans during a CNBC view, describing eBay as “a business that earns little and can make a lot more money.”
eBay confirmed it received the unsolicited offer and said its board would review it with advisers. The company noted that it had no prior contact with GameStop regarding the offer.
The offer comes as eBay is in the midst of its turnaround under the CEO Jamie Iannonewhich is focused on integrating AI tools and simplifying the sales process. The company has also targeted younger users, including the acquisition of second-hand fashion platform Depop in February.
Recent results suggest the strategy is gaining traction. In the first quarter of 2026, eBay’s revenue rose 19 percent year over year to $3.1 billion, while its profit rose 2 percent to $512 million. Its stock has risen about 60 percent over the past year, and the platform currently serves about 135 million shoppers.
That timing makes the deal harder to justify, some analysts say. “Why do you break things?Bernstein’s analyst Nikhil Devnani has written “The twist is working.”
