GameStop Proposes Takeover of eBay, Sparking Market Reactions

GameStop's unsolicited bid for eBay sent both stocks on divergent paths Monday. The gaming retailer offered $125 per share—a 20% premium to eBay's Friday close—in a half-cash, half-stock deal that values the e-commerce giant at a 46% premium to its February 4 price. Markets responded with skepticism: GameStop shares fell 6% at open while eBay gained 6%, though remained well below the proposed acquisition price.

The $12 billion meme stock darling faces an uphill battle acquiring its $46 billion target. "We are just starting," GameStop CEO Ryan Cohen told CNBC, alluding to potential resistance from eBay's board. The offer exposes fundamental valuation disparities—investors appear doubtful GameStop can finance the deal despite Cohen's assurance about stock issuance capacity.

This move follows GameStop's recent equity raise and ongoing volatility. The proposed acquisition marks Cohen's boldest strategic pivot yet, attempting to transform the brick-and-mortar retailer into an e-commerce contender. eBay confirmed receipt of the non-binding proposal, offering no further comment beyond standard board review protocols.