GameStop makes daring bid for eBay, hoping to rival Amazon
GameStop makes daring bid for eBay, hoping to rival Amazon
https://www.cnn.com/2026/05/04/business/gamestop-buys-ebay-intl
Publish Date: 2026-05-04 06:18:00
Source Domain: www.cnn.com
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– GameStop has proposed an acquisition of eBay for $55.5 billion, believing it could create a strong competitor to Amazon.
– This offer comes amidst a revival for eBay, which has been working on reinventing itself against competition from Walmart, Amazon, Shein, and Facebook Marketplace.
– GameStop’s offer is $125 per share, comprising half cash and half stock, representing a notable premium over eBay’s share price before GameStop began accumulating a 5% stake.
– As of recent data, GameStop is valued at $11.9 billion, marking an ambitious move considering eBay’s valuation at $46.2 billion. eBay’s shares have risen considerably following the bid reveal.
– GameStop CEO Ryan Cohen has stated the intention to cut costs, enhance profitability and leverage GameStop’s 1,600 stores to benefit eBay’s online operations, aiming for a combined entity that could challenge Amazon effectively.
– Cohen also sees significant advantages in live commerce and intends to take over as CEO of the merged company.
– eBay, founded in 1995, remains a significant player in the U.S. e-commerce market but has seen declining market share, according to market research from Emarketer.
– The company experienced a surge during the Covid-19 pandemic and has invested in artificial intelligence to increase appeal to shareholders, with stock showing a substantial increase since 2020.
– eBay announced its purchase of the British online resale platform Depop for $1.2 billion in February, pending regulatory approval in the UK.
– eBay recently reported a 19% increase in first-quarter revenue, with its gross merchandise volume rising by 18% to $22.2 billion.
– GameStop found prominence during the 2021 meme stock frenzy and has faced challenges due to a shift towards online streaming and digital downloads, yet has turned its financials around under Cohen’s leadership, switching from a net loss to net income in its latest financial year.
