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GameStop has made a non-binding $55.5 billion offer to buy eBay, proposing a price of $125 per share in a deal consisting of both cash and stock.

The bid represents a 20% premium over eBay’s closing price on the Friday prior to the announcement. To fund the acquisition, GameStop intends to use its $9.4 billion cash reserve alongside a $20 billion debt financing commitment from TD Bank.

Currently, GameStop has a market valuation of approximately $12 billion, while eBay is valued at roughly $46 billion.

Chief Executive Ryan Cohen stated that the acquisition is intended to position the combined company as a larger competitor to Amazon. Cohen has proposed a plan to achieve $2 billion in annual cost savings within the first year, primarily by reducing eBay’s sales and marketing expenditures.

Under the proposal, Cohen would serve as CEO of the merged entity and has stated he would receive no salary or cash bonuses, with his compensation tied entirely to the company’s performance.

For users, the proposal includes utilising GameStop’s 1,600 U.S. retail stores as physical infrastructure for the eBay marketplace. These locations would serve as centres for product authentication, intake, and fulfilment.

Cohen also plans to implement “live commerce” capabilities across this network to drive user engagement. If eBay’s board rejects the proposal, Cohen indicated he is prepared to take the offer directly to shareholders in a proxy fight.

The deal remains subject to approval from regulators and shareholders of both companies. Market analysts have expressed scepticism regarding the feasibility of the transaction, noting that it would result in eBay being burdened by GameStop’s debt. Following the announcement, eBay shares rose by more than 13% in after-hours trading, while GameStop shares increased by approximately 4%.