Ryan Cohen, the billionaire activist investor and CEO of GameStop, has made a $56 billion bid to acquire eBay, marking his most ambitious deal to date. In a letter sent yesterday (May 3), GameStop offered $125 per share in a cash-and-stock deal, roughly a 20 percent premium to eBay’s closing price last week and a 46 percent premium to the February 4 close, the day GameStop began building a 5 percent stake in the company. If the project is completed, Cohen will lead the combined company as CEO.
Cohen is no stranger to bold bets. He founded pet supply retailer Chewy in 2011 and sold it to PetSmart for $3.35 billion in 2017. He later rose to prominence during the meme stock boom of 2020, taking a stake in GameStop, joining its board in 2021 and becoming CEO in 2023. Under his leadership, GameStop reported $418 million in net income in fiscal 2025, Driven largely by significant cost reductions. He has also held activist positions at companies such as Nordstrom and Bed Bath & Beyond, from which he exited with a profit of $68 million.
Cohen’s idea for eBay focuses on a similar cost system. GameStop says it could cut $2 billion in annual expenses across sales, marketing, product development and general administrative functions. The company also says its 1,600 U.S. retail locations can support eBay’s authentication, fulfillment and direct commerce operations.
Where will the money come from?
The proposal raised immediate questions about funding. GameStop, which has a market cap of about $11 billion, has nearly $9 billion in cash and a $20 billion financing letter from TD Gap, but that still leaves a large deficit. eBay shares rose 5% on the news, while GameStop shares fell 8% amid investor skepticism. “We give the trade a relatively low probability of success“Bird analyst Colin Sebastian wrote in a note.
Cohen declined to provide detailed financing plans during an appearance on CNBC, describing eBay as “A low-income business that can make a lot of money“.
eBay confirmed it had received the unsolicited offer and said its board would review it with advisors. The company noted that it had no prior contact with GameStop regarding the offer.
The offering comes at a time when eBay is undergoing a major transformation under the leadership of CEO Jamie Iannone, who has focused on integrating artificial intelligence tools and simplifying the selling process. The company has also targeted younger users, including through its acquisition of second-hand fashion platform Depop in February.
Recent results indicate that the strategy is gaining momentum. In the first quarter of 2026, eBay’s revenue rose 19 percent year over year to $3.1 billion, while its profits grew 2 percent to $512 million. Its shares have risen nearly 60% over the past year, and the platform currently serves about 135 million buyers.
Some analysts say this momentum makes justifying the agreement more difficult. “Why disrupt things?“The turnaround is a success,” wrote Bernstein analyst Nikhil Devnani.
