Meme Stock GameStop Initiates $125 Acquisition Bid for 5% Stake in eBay

GameStop Corp. (GME) disclosed in an SEC filing on May 1 that it has accumulated an approximate 5% economic stake in eBay Inc. (EBAY) through common shares and derivatives, and asserted that eBay is undervalued. It submitted a non-binding proposal to acquire all outstanding shares at $125 per share, payable in cash and stock.

On May 4, eBay confirmed that its board has received GameStop’s unsolicited offer. The company said it will evaluate the proposal’s value and the certainty of GameStop’s share consideration with financial and legal advisors, and advised shareholders to refrain from any action for the time being.

After review, eBay’s board formally rejected the proposal—valued at about $56 billion (approximately KRW 75 trillion)—on May 12, calling it “unreliable and unattractive” due to financing uncertainties and post-merger business risks. GameStop CEO Ryan Cohen stated he has no intention of withdrawing the offer and argued that eBay’s shareholders should be allowed to assess it independently.

eBay operates a global online marketplace that connects individuals and businesses, generating stable cash flow through its fee-based e-commerce model. GameStop’s takeover attempt represents a push by the once brick-and-mortar video game retailer—elevated by the meme-stock phenomenon—to accelerate its digital transformation and diversify its operations via a major e-commerce platform. The bid could also reshape the competitive dynamics of global e-commerce, potentially impacting incumbents such as Amazon.