GameStop has submitted a non-binding $55.5 billion offer to acquire eBay at $125 per share, representing a 20% premium over eBay's last Friday close. The bid is supported by a $20 billion commitment letter from TD Bank and the company's own $519 million Bitcoin treasury.
Deal Details and Strategic Intent
GameStop CEO Ryan Cohen told eBay's board he believes the platform can become a major rival to Amazon. He signaled readiness to launch a proxy fight and go directly to shareholders if the board refuses to negotiate. TD Bank provided a $20 billion commitment letter to support financing.
By the end of fiscal 2025, GameStop held nearly $9 billion in cash and investments, built through years of cost-cutting and the recent deliberate shift toward digital assets. The company's robust balance sheet enables such a bold M&A move.
The Bitcoin Connection
Bitcoin sits at the center of GameStop's modernized balance sheet. During fiscal 2025, the company acquired 4,710 BTC for approximately $500 million, of which 4,709 were posted as collateral in a covered options strategy. The position has since grown to roughly $519 million and forms part of the balance sheet underpinning the eBay proposal.
The approach mirrors, in spirit if not scale, the model popularized by Strategy (formerly MicroStrategy), which holds 818,334 BTC and uses preferred equity issuance and capital market access to fund aggressive Bitcoin accumulation. GameStop differs by using its non-traditional balance sheet for M&A ambitions that would have seemed unthinkable three years ago, rather than further hoarding.
Market Reaction and Outlook
GameStop shares closed at $26.53 on May 1, up 6.33%, as investors priced in the possibility of change. eBay shares rose over 10% in after-hours trading. The GME meme coin surged 54% within hours of the news. eBay's board has not yet publicly responded to the proposal.
Analysts say if successful, GameStop would transform from a brick-and-mortar game retailer into an e-commerce giant, with its Bitcoin appreciation potentially serving as a template for future deals. All eyes are now on eBay's board decision and potential antitrust scrutiny.