eBay Inc. (NASDAQ:EBAY) surged 9% in premarket trading Monday, hitting a new 52-week high, while GameStop Corp. (NYSE:GME) fell 3%, as investors reacted to GameStop's proposal to acquire the online marketplace.

On Sunday, GameStop said it has submitted a non-binding offer to acquire 100% of eBay for $125.00 per share in a mix of cash and stock. The bid represents a 46% premium to eBay's unaffected closing price on Feb. 4, 2026, when GameStop began building its position.

GameStop has accumulated a 5% economic stake in eBay through derivatives and direct ownership and plans to file a Schedule 13D and Hart-Scott-Rodino (HSR) notification.

Deal Structure and Financing

The proposed consideration includes 50% cash and 50% GameStop common stock, with shareholder election rights subject to pro-rata allocation. The transaction implies an aggregate undiluted equity value of about $55.5 billion, representing a 27% premium to eBay's 30-day VWAP and a 36% premium to its 90-day VWAP.

GameStop expects to fund the cash portion using roughly $9.4 billion in cash and liquid investments as of Jan. 31, 2026, along with third-party financing. The company said it has received a "highly-confident" letter from TD Securities for up to $20 billion.

Cost Reduction Strategy and Synergies

GameStop outlined plans to deliver $2 billion in annualized cost reductions within 12 months of ...