GameStop Plunges After $56B eBay Bid; Bitcoin Questions Loom

GameStop shares tumbled after the videogame retailer announced an unsolicited, nonbinding cash-and-stock offer valuing eBay at about $56 billion. Investors reacted to the gap between the proposed price and how GameStop would pay for the deal.

The offer prices eBay at $125 per share, about a 20% premium to the prior Friday close of $104.07 and roughly a 46% premium to the Feb. 4 price, when GameStop began buying eBay stock. After the bid, GameStop stock fell about 10% while eBay rose roughly 5% to near $109, still below the $125 offer.

GameStop’s market value is under $12 billion, creating a large mismatch with the roughly $56 billion price tag. TD Bank has provided a $20 billion financing letter to GameStop, leaving a substantial shortfall before any deal could be completed.

The proposal, announced on Sunday, is unsolicited and nonbinding. eBay confirmed receipt and said its board will review the offer. GameStop leadership indicated that formal talks had not begun and that the company was at the start of the process, noting that incentives at public companies can complicate negotiations.

Michael Burry, an early GameStop investor, sold his entire position after the bid became public. In a newsletter, he wrote that he closed his GME holdings and that converting GameStop into a holding-company model did not fit with the likely financing profile, which could include heavy borrowing, equity issuance, or other complex arrangements.

The bid drew attention to GameStop’s cryptocurrency holdings. The company approved Bitcoin as a treasury reserve asset and purchased 4,710 BTC for $513 million in May 2025. GameStop has used that Bitcoin as collateral with Coinbase for an options strategy intended to generate yield while retaining exposure to BTC. The offer raises questions about how a combined company could use those holdings alongside eBay’s marketplace of about 135 million active buyers across roughly 190 markets and nearly $80 billion in gross merchandise volume in 2025.

Any transaction would require a detailed financing plan that addresses the valuation gap and regulatory, operational and integration issues at scale. For now, the eBay board is reviewing the proposal and markets have moved to reflect uncertainty about whether the deal can be financed without major changes to GameStop’s capital structure.