On May 4, 2023, GameStop Corp., a video game retailer, experienced a 6.5% drop in its share price, reaching $24.80 on the New York Stock Exchange after announcing a $55.5 billion bid for eBay, an e-commerce giant valued at nearly four times GameStop's market cap. This ambitious proposal, which includes a mix of cash and stock, has raised skepticism among investors, leading to a selling spree. In contrast, eBay's shares rose by 7%, reaching a high of $111 as it evaluates the offer.

GameStop's CEO, Ryan Cohen, indicated that he is willing to engage in a proxy fight to take the proposal directly to eBay's shareholders if the board rejects it. He has outlined plans to achieve $2 billion in annual cost reductions within a year of the deal's closure, focusing on eBay's sales and marketing expenses. The proposed acquisition marks a rare instance of a smaller company attempting to acquire a significantly larger one, a strategy that has historically faced challenges. GameStop's stock has been highly volatile, with a 78% return in 2024 followed by a 36% decline in 2025, reflecting its unpredictable market behavior.