Yesterday, retail gaming giant GameStop made an unexpected and ambitious offer to purchase the e-commerce titan eBay for a hefty $55.5 billion.
In a letter to eBay’s board, GameStop Chairman and CEO Ryan Cohen argued that eBay could benefit from cost-cutting measures and a physical retail presence, suggesting its 1,600 US stores would bolster eBay's sales and fulfillment network without requiring additional capital investment.
Despite this grand vision, many are skeptical about how GameStop will fund such a significant deal. The company has struggled with store closures in recent years, including the closure of approximately 470 US-based stores at the beginning of 2026 and 590 more in 2024. GameStop’s stock price has also taken a dip, falling by around 2 percent, while eBay’s rose by about 5 percent.
Cohen plans to become CEO post-merger if the deal goes through, despite currently owning only around 9% of GameStop and receiving no salary or bonuses. He will be compensated based on the performance of the combined company, which seems like a risky move given the current financial climate.
