eBay shares soar as US Gamestop shops chain makes $56bn takeover bid

American computer game retailer GameStop has made a US$56bn (£41bn) bid to take over eBay.

Shares in the e-commerce platform soared on Monday, after GameStop chief executive Ryan Cohen proposed the takeover of the company that is worth nearly four times its market value.

The unsolicited bid forms part of a push by GameStop to compete with online retail giant Amazon.

GameStop - which became a well-known meme stocks during a price rise in January 2021 - said its 1,600 US stores could become drop-off and shipping locations for the eBay.

One proposal included live sales broadcasts from GameStop locations featuring eBay products.

"eBay has the second largest commerce franchise and there's a big opportunity to do something much larger," Mr Cohen told CNBC.

GameStop's bid is $125 (£92) per share in cash and stock.

eBay said it was reviewing the offer and GameStop's ability to deliver a "binding, actionable proposal".

The gaming chain is looking to lower costs at eBay, saying that the online seller spent $2.4bn (£1.8) on sales and marketing in the 2025 fiscal year while only adding one million new active customers.

GameStop said it would achieve $2bn (£1.5bn) in annualised cost cuts within a year of the proposed transaction's closing.

Mr Cohen, who has a 9% stake in GameStop, would serve as CEO of the combined company.

He argued he could ​replicate his cost-cutting approach at GameStop to boost eBay's profitability

He would only be compensated based on the company's performance.

GameStop said that it started accumulating shares in eBay in February and currently has a 5% stake.

Despite a rise in eBay shares to $112 (£83) in premarket trading on Monday, this was still short of GameStop's offer.

Some investors were doubtful the deal would close, with there being very few examples of smaller companies acquiring a larger one successfully.

Analysts flagged significant financing challenges, citing GameStop's smaller balance sheet, and the ​scale of debt and equity that would be ⁠required to buy eBay.

They said they would be "even more surprised if anything became of it".

Mr Cohen became GameStop chief executive in 2023, following a revolving door of leadership change as the company tried to survive as streaming upended the gaming industry.

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GameStop became one of the most well-known meme stocks to create a frenzy among retail traders on Wall Street in January 2021.

The company's share price took off after a band of smaller-pocketed investors helped boost its stock by 1,000% in two weeks.

The phenomenon was partially triggered by a Reddit investing group rallying around the stock and causing it to rise.

This led to large hedge funds that had bet against the company being forced to buy the stock at a high cost.

GameStop shares have fallen since then but are still up more than 30% this year.

Shares of eBay jumped more than 8% in premarket trading on Monday, while GameStop's stock declined more than 3%.

(c) Sky News 2026: eBay shares soar as US Gamestop shops chain makes $56bn takeover bid