United States video game retailer GameStop has made an unsolicited $55.5 billion (£41 billion) offer to acquire eBay, warning the bid could become hostile if rejected by the company’s board.

GameStop, which has quietly built a 5 per cent stake in eBay, is proposing $125 per share in a deal structured as an equal mix of cash and stock.

The move marks a bold expansion attempt by GameStop, which rose to global attention during the 2021 meme-stock frenzy but remains significantly smaller than its target.

The company was valued at about $12 billion on Friday before announcing the bid, while eBay—founded in 1995 by Pierre Omidyar as a personal project, has a market value of roughly $46 billion.

GameStop rose to prominence during the 2021 meme-stock frenzy, when a wave of Gen Z and millennial retail investors drove a dramatic market rally that severely pressured several hedge funds.

During that period, GameStop shares surged from $3.25 in April 2020 to a peak of $347.50 in late January 2021, a gain of 10,692 per cent.

The rally came as hedge funds were heavily shorting the stock, betting against the company amid pandemic-era shifts that pushed more gaming activity online.

Since then, GameStop has closed hundreds of stores, including about 590 in 2025.

However, CEO Ryan Cohen said the remaining 1,600 outlets could be repurposed as a “national network for authentication, intake, fulfilment, and live commerce” in support of eBay’s operations if the acquisition proceeds.