Shares of eBay are soaring before the opening bell after Ryan Cohen's GameStop announced an attempt to take over the company for about $56 billion, seeing it as a vehicle to compete with online retail giant Amazon

ByMICHELLE CHAPMAN AP business writer

Shares of eBay are soaring before the opening bell Monday as Ryan Cohen's GameStop pursues an approximately $56 billion takeover of company, seeing it as a vehicle to compete with online retail giant Amazon.

The national gaming retailer said that its approximately 1,600 U.S. stores could become drop-off and shipping locations. One proposal includes live sales broadcasts from GameStop locations featuring eBay products.

“EBay has the second largest commerce franchise and there’s a big opportunity to do something much larger,” Cohen said in a CNBC interview Monday.

GameStop's bid is $125 per share in cash and stock. The equity value of the proposed deal is $55 billion on paper.

GameStop said that it started accumulating shares in eBay beginning in February and currently has a 5% stake.

The company is looking to lower costs at eBay, saying that the online seller spent $2.4 billion on sales and marketing in fiscal 2025 while only adding 1 million net active buyers. GameStop says it will achieve $2 billion in annualized cost cuts within a year of the proposed transaction's closing.

Cohen, who owns about 9% of GameStop, would serve as CEO of the combined company. He would only be compensated based on the combined company's performance.

Cohen became CEO of GameStop in 2023. At the time the position had become a rotating door with the company trying to survive as streaming upended the gaming industry. GameStop became one of the most well-known meme stocks to create a frenzy among retail traders on Wall Street. The company’s shares took off in 2021 after a band of smaller-pocketed investors helped boost its stock by 1,000% in two weeks.

GameStop shares have fallen since then, but are still up more than 30% this year.

Shares of eBay jumped more than 8% in premarket trading, while GameStop's stock declined more than 3%.