GameStop Wants to Buy eBay. Here's Why That Might Ac...

Most people laughed when Ryan Cohen said he wanted to turn GameStop into a $100 billion company. Now he's actually trying to pull it off—and the target isn't some struggling startup. It's eBay.

The video game retailer that meme traders famously saved from bankruptcy in 2021 is reportedly preparing an offer for the online marketplace giant, according to the Wall Street Journal. GameStop has been quietly building a stake in eBay shares, and an official bid could come as soon as late May. If eBay's board rejects the offer, Cohen has indicated he'll take the deal directly to shareholders.

The numbers are staggering. GameStop's market cap sits at roughly $12 billion. eBay's is around $46 billion—nearly four times larger. This isn't a merger of equals. It's a retail minnow trying to swallow an e-commerce whale.

And yet, somehow, this might be the most logical move Cohen has ever made.

What Everyone Else Is Missing

The headlines are calling this "audacious" and "unlikely"—and they're missing the point. The media is focused on the size disparity, the history of GameStop's retail struggles, and the obvious question: why would eBay want to be acquired by a video game store?

But the real story isn't about GameStop buying eBay. It's about Ryan Cohen building a collectibles empire.

Here's what the coverage isn't telling you: eBay isn't just an online auction house anymore. It's become the global leader in high-end collectibles—trading cards, sneakers, vintage toys, and rare memorabilia. Last year, eBay generated $581 million from advertising alone. It acquired Depop for $1.2 billion to tap into Gen Z resale culture. It launched AI shopping agents that help buyers find products across its 1.3 billion active buyer base.

Cohen doesn't want GameStop to become eBay. He wants eBay to become the backbone of his collectibles vision.

The $35 Billion Motivation

Understanding Cohen's compensation package is essential to understanding this deal.

In January, GameStop's board unveiled a revised pay package for Cohen that could be worth up to $35 billion—if he delivers a $100 billion market cap and $10 billion in cumulative EBITDA. He draws no salary. He gets nothing if he fails.

This is a Musk-style moonshot incentive, and it explains everything. Cohen needs to multiply GameStop's value by roughly 10x in a compressed timeframe. Organic growth won't get him there. Even ambitious Bitcoin investments won't move the needle enough. The only path is a transformative acquisition—and eBay is the only target that fits.

But here's what makes this clever: Cohen doesn't need to convince eBay's board. He's been building a position in eBay shares quietly. If he accumulates enough stake and takes the offer directly to shareholders, he can force the company's hand—even if management says no.

The Chewy Playbook, Applied to eBay

Cohen built Chewy from scratch, turning a pet supplies startup into a $3.3 billion acquisition by PetSmart in 2017. His secret sauce wasn't product innovation—it was customer obsession. Chewy was famous for handwritten thank-you notes to customers, surprise birthday gifts for pets, and a logistics network that could deliver almost anything within a day.

At GameStop, Cohen has been applying the same playbook. He's closed hundreds of unprofitable stores, streamlined operations, and built a massive cash war chest. The company went from losing money to reporting consistent profits—all while the broader video game retail industry continued shrinking.

Now imagine applying that same approach to eBay. The marketplace has never been known for customer service. It's transactional, utilitarian, and largely automated. There's enormous room to inject the "Chewy philosophy" into an platform that serves 1.3 billion buyers worldwide.

More importantly, Cohen has shown he can win in competitive, fragmented markets. The pet food industry was dominated by big-box stores and online giants when Chewy launched. He found a way to differentiate through experience and logistics. The collectibles market—trading cards, retro games, vintage toys—is similarly fragmented. eBay already dominates it. Cohen wants to own the entire chain.

Why eBay Makes Sense

Let's look at the strategic fit.

Collectibles are the future. Both companies already operate in overlapping spaces. GameStop has been pivoting hard into retro games, trading cards, and collectibles. eBay is the world's largest marketplace for exactly these items. A combined entity would control the entire resale ecosystem—from physical retail to online auction to mobile trading.

AI agents are the next frontier. eBay has been aggressively investing in AI shopping agents that guide buyers through the purchase journey. This aligns with Cohen's vision of building a "brutally efficient" technology company. He compared his approach to Berkshire Hathaway's historical acquisition strategy, but accelerated: "what Berkshire did in decades we're attempting to do in a much shorter time."

The timing is ironic. eBay was once the original e-commerce giant—before Amazon existed. It's now worth less than a quarter of Amazon's valuation. Cohen sees an under-optimized asset that he believes he can fix. It's the same playbook he used at Chewy: take a fragmented, inefficient industry and apply modern technology and customer-first thinking.

The Challenges Are Real

This isn't a guaranteed success. Far from it.

Financing the deal. GameStop has $9 billion in cash and investments—but that's not enough to buy eBay at a premium. Any deal would likely involve significant stock consideration, which means diluting existing shareholders. More importantly, convincing eBay shareholders to accept volatile GameStop stock as payment would be a tough sell.

Regulatory scrutiny. The DOJ already blocked JetBlue's acquisition of Spirit Airlines on antitrust grounds. A merger between two marketplace platforms would likely face similar scrutiny. The government has shown willingness to block deals that could reduce consumer choice—even in unrelated industries.

Integration nightmare. GameStop and eBay have completely different operational models, technology stacks, and corporate cultures. Cohen is known for aggressive cost-cutting, but merging two companies of this scale would require far more than layoffs.

The meme stock risk. GameStop's stock price has historically moved more on retail investor sentiment than fundamentals. Using GameStop stock as acquisition currency means betting that the market will value the combined entity at a premium—even as the underlying business faces structural challenges in physical retail.

What Happens Next

Short-term market reaction has been positive. eBay shares jumped 13-15% on the news. GameStop rose 3-4%. Investors see the potential, even if they doubt the execution.

The next few weeks will be critical. If Cohen actually submits an offer, expect eBay's board to resist. They'll argue the company is worth more, that the combination creates regulatory risk, and that shareholders would be better off with independence. Cohen will counter by pointing to his track record at Chewy—the company he built and sold for $3.3 billion—and his ability to transform outdated business models.

If the deal fails, Cohen will likely pivot to another target. He's been clear: he's looking for "undervalued, high-quality, durable, scalable" companies with "sleepy management teams." There are other fish in the sea.

But if this deal succeeds? GameStop ceases to be a video game retailer. It becomes something entirely different—a holding company that combines physical retail, online marketplace, and collectibles at a scale that's never existed before.

The Amazon Question

Here's the big picture that nobody's discussing: this deal is really about competing with Amazon.

Amazon controls roughly 40% of the U.S. e-commerce market. It has crushed competition in almost every category it enters. But there's one area where Amazon has never achieved dominance: collectibles and rare goods. The market is too fragmented, too subjective, and too reliant on discovery rather than search.

eBay remains the go-to platform for collectors. Whether you're looking for a first-edition Pokemon card, a vintage Star Wars action figure, or a rare sneaker from 1985—eBay is where you find it. The platform has 1.3 billion active buyers, a robust seller ecosystem, and infrastructure specifically designed for one-of-a-kind items.

Cohen's vision, whether he articulates it explicitly or not, is to create an Amazon for collectibles. Not just for trading cards and retro games, but for every category of rare and collectible merchandise. By combining GameStop's physical retail footprint with eBay's digital marketplace, he could build something that Amazon can't easily replicate.

This is why the deal makes strategic sense. It's not about saving GameStop—it's about building the anti-Amazon.

The Bear Case

For every bull argument, there's a compelling counter-argument.

eBay doesn't need saving. The company has been quietly profitable and has grown revenue for three consecutive years. It's not a failing business looking for a white knight. eBay's management may have no interest in being acquired by a company 1/4 its size.

The financing is problematic. Even with $9 billion in cash, GameStop can't afford eBay at a fair price. Any deal would require significant leverage or stock. With GameStop's stock price already up 30% this year, any dilution would be substantial. Current shareholders could see their holdings significantly watered down.

Cohen's track record at GameStop is mixed. Yes, he returned the company to profitability through cost-cutting. But the underlying business continues to decline. Physical game sales are shrinking as digital downloads and game streaming grow. Cohen hasn't demonstrated an ability to grow revenue—he's only demonstrated an ability to cut costs.

The antitrust risk is real. The Biden administration blocked the JetBlue-Spirit merger. A Trump administration might be more friendly to deals, but a GameStop-eBay combination would create a dominant player in collectibles and would likely face scrutiny from regulators concerned about marketplace competition.

Looking Ahead

The story is far from over. Cohen has demonstrated an ability to surprise skeptics—the 2021 short squeeze was proof of that. But this is different. Taking on a company four times your size requires more than market manipulation. It requires a credible plan, financing, and execution capability.

What we know for certain: Ryan Cohen is not done. Whether this deal succeeds or fails, he's signaled that GameStop will pursue aggressive growth. The era of the quiet video game retailer is over.

The question now is whether the market will give him the capital and time to execute his vision—or whether this ambitious bet will become another footnote in the history of overreach.

One thing is clear: the next chapter in the GameStop story will be must-watch television for anyone interested in the future of retail.

What This Means for You

Whether you're an investor, a collector, or just someone watching from the sidelines, pay attention. This isn't just about one company's ambition. It's a test of whether the meme stock movement can translate into real corporate transformation—or whether it's all just theater.

If Cohen pulls this off, he changes the rules of what's possible in retail. If he fails, he becomes a cautionary tale about overreach. Either way, the next few months will be among the most entertaining in recent business history.

The question isn't whether Ryan Cohen is crazy. It's whether he's crazy like a fox—or just crazy.

Tags: #GameStop #eBay #RyanCohen #M&A #Ecommerce #Collectibles #Business

Summary: GameStop is reportedly preparing an offer to acquire eBay in Ryan Cohen's bid to build a $100 billion collectibles empire, leveraging eBay's 1.3B active buyers and AI shopping agents.

Cover Suggestion: A split visual showing GameStop's retail store on one side and eBay's app interface on the other, with a bridge connecting them—representing the merger of physical and digital collectibles.