GameStop Corp. (NYSE:GME) has launched a historic $56 billion takeover bid for e-commerce giant eBay Inc. (NASDAQ:EBAY), setting the stage for a dramatic corporate battle as CEO Ryan Cohen threatens a hostile approach if the board refuses to engage.
A ‘Massive’ David vs. Goliath Play
The video game retailer announced a formal proposal to acquire 100% of eBay for $125.00 per share, evenly split between cash and stock.
Chief Market Strategist Shay Boloor highlighted the staggering scale of the David-and-Goliath bid, pointing out that the offer is “massive relative to GameStop's ~$12B market cap.”
GameStop has already quietly built a 5% economic stake in eBay over the past three months and secured up to $20 billion in third-party acquisition financing from TD Securities to make the math work.
The Threat To Go ‘Directly To Shareholders’
The defining element of GameStop’s acquisition strategy is its aggressively proactive posture. According to Boloor and other market observers, Cohen is ready to take the proposal “directly to shareholders” if eBay management pushes back.
This explicit threat of a hostile takeover places immense pressure on eBay's board. The $125 offer represents a substantial 46% premium to eBay's unaffected share price before GameStop's accumulation phase, a lucrative figure that may tempt retail and institutional investors to bypass a resistant board entirely.
Burry's Blueprint Becomes Reality
The “monumental” deal, as hinted at by Michael Burry in early May, materialized as a formal proposal. Burry, who has written extensively on GameStop's evolution, noted he “proposed a hypothetical strategy” for Cohen to use creative financing for acquisitions earlier this year.
His prediction proved prescient; GameStop confirmed it has quietly built a 5% stake, mirroring the “audacious plan” Burry signaled to transform the retailer into a $100-billion juggernaut.
Ryan Cohen At The Helm
Should the acquisition succeed, Cohen will step in as the Chief Executive Officer of the combined entity. Wall Street analysts are already championing this proposed leadership shift.
Investor Anthony Pompliano weighed in, stating, “Putting @ryancohen in charge of the combined company will create more shareholder value than anything else in my opinion.”
GameStop plans to realize this value by slashing $2 billion in annualized costs within twelve months, heavily targeting eBay’s bloated marketing budget.
Furthermore, Cohen's unique compensation strategy—taking no salary or golden parachute, and being paid purely on combined performance—has drawn widespread acclaim.
How Have GME And EBAY Performed In 2026?
Shares of GME have risen by 32.12% year-to-date, while the S&P 5000 has advanced by 5.42% over the same period. It closed 6.33% higher on Friday at $26.53 apiece and was 0.68% lower in premarket on Monday.
Over the last month, GME was up 16.56% and 19.02% over the last six months. Benzinga’s Edge Stock Rankings indicate that GME maintains a strong price trend in the short, medium, and long terms, with a good growth score.
Shares of EBAY have advanced by 19.48% year-to-date, while the Nasdaq Composite has advanced by 8.09% over the same period. It closed 0.57% lower on Friday at $104.07 apiece and was 8.62% higher in premarket on Monday.
Over the last month, EBAY was up 11.75% and higher by 27.99% over the last six months. Benzinga’s Edge Stock Rankings indicate that EBAY maintains a strong price trend in the short, medium and long terms, with a good quality score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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