\nGameStop Corp. (NYSE: GME) today submitted a non-binding proposal to acquire 100% of eBay Inc. (NASDAQ: EBAY) at $125.00 per share in cash and stock. The offer represents a 46% premium to eBay\u2019s unaffected closing price on February 4, 2026, the day GameStop started accumulating its position in eBay. GameStop has built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock. GameStop is filing a Schedule 13D and HSR notification tomorrow. The full proposal letter and accompanying materials are available at investor.gamestop.com\/ebay<\/a>.<\/p>\n
\nThe proposed offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock, with full shareholder election rights as to consideration type and pro-rata allocation. Aggregate undiluted equity value is approximately $55.5 billion, based on eBay\u2019s most recently disclosed undiluted share count, representing a 27% premium to the 30-day VWAP and a 36% premium to the 90-day VWAP. The transaction is conditioned on customary closing conditions. The cash consideration is expected to be funded from a combination of (i) cash and liquid investments on GameStop\u2019s balance sheet, which totaled ~$9.4 billion as of January 31, 2026, and (ii) third-party acquisition financing, in respect of which GameStop has received a highly-confident letter from TD Securities for up to $20 billion.<\/p>\n
\neBay spent $2.4 billion on Sales & Marketing in fiscal 2025 while only adding one million net active buyers (134M to 135M – a net increase of less than 0.75%). GameStop will deliver $2 billion of annualized cost reductions within twelve months of closing:<\/p>\n
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- ~$1.2 billion from Sales & Marketing. <\/b>More spend is not producing more users on a marketplace with near-universal brand recognition.\n<\/li>\n
- ~$300 million from Product Development. <\/b>Product Development expense grew 11% in fiscal 2025 against revenue growth of 8%.\n<\/li>\n
- ~$500 million from General & Administrative. <\/b>Consolidated finance, HR, real estate, legal, IT, and professional services across the combined company.\n<\/li>\n<\/ul>\n
\nOn cost reductions alone, eBay\u2019s diluted GAAP earnings per share from continuing operations would increase from $4.26 to $7.79 in year one. Beyond cost, GameStop\u2019s ~1,600 US retail locations give eBay a national network for authentication, intake, fulfillment, and live commerce.<\/p>\n
\nFollowing close, Ryan Cohen will serve as Chief Executive Officer of the combined company.<\/p>\n
\nMr. Cohen has led GameStop since January 2021. Over that period, GameStop moved from a $381 million net loss in fiscal 2021 to $418 million of net income in fiscal 2025, reduced SG&A by ~$800 million (47%), retired its legacy debt, and raised $4.2 billion of long-term debt at 0% coupon. He owns ~9% of GameStop and receives no salary, no cash bonuses, and no golden parachute. He will be compensated solely based on the performance of the combined company.<\/p>\n
\nContacts<\/p>\n
GameStop Corp. Investor Relations
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(817) 424-2001
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ir@gamestop.com<\/a><\/p>\nImportant Information for Investors and Stockholders<\/b><\/p>\n
No Offer or Solicitation<\/b><\/p>\n
\nThis communication relates to a business combination between GameStop and that has been proposed by GameStop (the \u201cProposed Transaction<\/span>\u201d). This communication is for informational purposes only and is neither an offer to sell or purchase, nor the solicitation of an offer to buy or sell, any securities (or the solicitation of any proxy or vote with respect to any matter), nor shall there be any sale or purchase, issuance or other transfer of securities (or the solicitation of any proxy or other vote) with respect to the Proposed Transaction or otherwise in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.<\/p>\n
Additional Information and Where to Find It<\/b><\/p>\n
\nThis communication may be deemed to be solicitation material in respect of the Proposed Transaction. In connection with the Proposed Transaction, GameStop (and, potentially, eBay) may file one or more registration statements, proxy statements, proxy statement\/prospectuses or other documents with the Securities and Exchange Commission (\u201cSEC<\/span>\u201d). This communication is not a substitute for any proxy statement, registration statement, proxy statement\/prospectus or other document GameStop and\/or eBay may file with the SEC or send to stockholders in connection with the Proposed Transaction.<\/p>\n
\nInvestors and security holders of GameStop and eBay are urged to read all relevant documents filed with the SEC, including any proxy statement(s), registration statement, proxy statement\/prospectuses and\/or other documents, carefully in their entirety if and when they become available as they will contain important information about the proposed transaction. Any definitive proxy statement(s) and\/or proxy statement\/prospectuses or other applicable definitive materials (if and when available) will be mailed to stockholders of GameStop and\/or eBay, as applicable. Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by GameStop or eBay through the website maintained by the SEC at http:\/\/www.sec.gov<\/a>. Copies of documents filed with the SEC by GameStop will also be made available free of charge on GameStop\u2019s website at https:\/\/investor.gamestop.com\/<\/a>.<\/p>\n
Certain Information Regarding Participants<\/b><\/p>\n
\nGameStop and its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the Proposed Transaction, should the Proposed Transaction and any such solicitation occur. Information about the directors and executive officers of GameStop is set forth in (i) GameStop\u2019s proxy statement for the 2025 Annual Meeting of Stockholders, which was filed with the SEC on April 24, 2025 (the \u201c2025 Proxy Statement<\/span>\u201d), which is available here<\/a>, including under the headings \u201cProposal 1: Election of Directors\u201d, \u201cThe Director Nominees\u201d, \u201cDirector Nominee Qualifications and Experience\u201d, \u201cBiographies of Director Nominees\u201d, \u201cThe Board of Directors\u201d, \u201cCorporate Governance\u201d, \u201cDirector Compensation\u201d, \u201cExecutive Officers\u201d, \u201cSecurity Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters\u201d, \u201cCompensation Committee Interlocks and Insider Participation\u201d, \u201cProposal No. 2 \u2013 Advisory Vote on Executive Compensation\u201d, \u201cCompensation Discussion and Analysis\u201d, \u201cCompensation Committee Report on Executive Compensation\u201d, \u201cExecutive Compensation Tables\u201d, \u201cCEO Pay Ratio\u201d, \u201cPay Versus Performance\u201d, \u201cCertain Relationships and Related Transactions\u201d, (ii) under Item 5.02 \u201cDeparture of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers\u201d in the Current Report on Form 8-K filed by GameStop with the SEC on August 11, 2025 (available here<\/a>), (iii) under Item 8.01 \u201cOther Events\u201d in the Current Report on Form 8-K filed by GameStop with the SEC on January 7, 2026 (available here<\/a>) and (iv) under Item 8.01 \u201cOther Events\u201d in the Current Report on Form 8-K filed by GameStop with the SEC on January 8, 2026 (available here<\/a>). To the extent holdings of such persons in the Company\u2019s securities have changed since the amounts described in the 2025 Proxy Statement, such changes have been reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC, by Ryan Cohen on January 22, 2026 (available here<\/a>), by Daniel W. Moore on April 3, 2026, January 6, 2026, December 29, 2025, October 2, 2025, September 3, 2025 and August 12, 2025 (available here<\/a>, here<\/a>, here<\/a>, here<\/a>, here<\/a> and here<\/a> respectively), by Mark H. Robinson on April 15, 2026, April 3, 2026, January 13, 2026, January 6, 2026, December 29, 2025, December 10, 2025 and October 2, 2025, (available here<\/a>, here<\/a>, here<\/a>, here<\/a>, here<\/a>, here<\/a> and here<\/a>, respectively), by Alain Attal on January 21, 2026 and January 20, 2026 (available here<\/a> and here<\/a>, respectively), by Lawrence Cheng on January 26, 2026 (available here<\/a>), and by James Grube on July 1, 2025 (available here<\/a>). Additional information can also be found in the Company\u2019s Annual Report on Form 10-K for the fiscal year ended January 31, 2026, filed with the SEC on March 24, 2026, which is available here<\/a>.<\/p>\n
\nFurther information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in a proxy statement for GameStop\u2019s Board of Directors for election at the 2026 Annual Meeting .and in any proxy statement\/prospectus and\/or other relevant materials to be filed with the SEC in connection with the Proposed Transaction when they become available.<\/p>\n
Disclaimer<\/b><\/p>\n
\nAny information concerning eBay contained in this filing has been taken from, or based upon, publicly available information. Although GameStop does not have any information that would indicate that any information contained in this filing that has been taken from such documents is inaccurate or incomplete, GameStop does not take any responsibility for the accuracy or completeness of such information. To date, GameStop has not had access to the books and records of eBay.<\/p>\n
Forward-Looking Statements<\/b><\/p>\n
\nCertain statements in this communication may constitute \u201cforward-looking statements\u201d within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as \u201cmay,\u201d \u201cwill,\u201d \u201ccould,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201canticipate,\u201d \u201cestimate,\u201d \u201cexpect,\u201d \u201cpredict,\u201d \u201cproject,\u201d \u201cfuture,\u201d \u201cpotential,\u201d \u201cintend,\u201d \u201cplan,\u201d \u201cassume,\u201d \u201cbelieve,\u201d \u201cforecast,\u201d \u201clook,\u201d \u201cbuild,\u201d \u201cfocus,\u201d \u201ccreate,\u201d \u201cwork,\u201d \u201ccontinue\u201d or the negative of such terms or other variations thereof and words and terms of similar substance. Such statements also include, among others, statements with respect to GameStop\u2019s proposed acquisition of eBay, such as statements about whether or not the transaction will occur, expected cost reductions, operational benefits, financing, the timing and structure of the transaction, anticipated benefits of the combination, leadership of the combined company, and similar statements. These forward-looking statements are based on GameStop\u2019s current beliefs, expectations and assumptions and involve significant known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, but are not limited to: the failure of eBay\u2019s Board of Directors to engage with the proposal; the failure to negotiate or execute a definitive agreement providing for the consummation of a transaction on the terms described or at all; failure to obtain required financing on the expected terms; failure to obtain required regulatory approvals (including under the Hart-Scott-Rodino Antitrust Improvements Act); failure to obtain required shareholder approvals of GameStop and\/or eBay; failure to realize anticipated cost reductions, operational benefits, or operating efficiencies; risks related to integration of the businesses; the impact of the announcement of the proposal on GameStop\u2019s and eBay\u2019s respective businesses, customers, suppliers, and employees; the diversion of management attention; competitive responses; market and economic conditions; and other risks described from time to time in GameStop\u2019s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and subsequent filings. GameStop undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Final terms and conditions of any transaction are subject to negotiation and execution of a definitive agreement providing for the consummation of a transaction.<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260503694843\/en\/<\/a><\/span><\/p>\n
- ~$300 million from Product Development. <\/b>Product Development expense grew 11% in fiscal 2025 against revenue growth of 8%.\n<\/li>\n