GameStop Corporation has proposed to buy the online auction giant eBay Inc. for $125 per share, or a total of roughly $56 billion.

“The offer represents a 46% premium to eBay’s unaffected closing price on February 4, 2026, the day GameStop started accumulating its position in eBay,” reads a press release from the video game retailer. “GameStop has built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock.”

Here’s what you need to know about the unusual move:

What did GameStop propose?

The deal, as proposed, would comprise 50% cash and 50% GameStop stock. Ryan Cohen, who took over as GameStop’s CEO in 2021, would remain as CEO of the combined company, should the bid be accepted.

How has eBay responded?

On Monday morning, eBay confirmed receipt of the offer, saying “it had no discussions with or outreach from GameStop prior to receiving the proposal.”

It further said that its board of directors, “in consultation with its financial and legal advisors, will carefully review and consider the unsolicited proposal to determine the course of action that it believes is in the best interests of the company and all eBay shareholders.”

This is not a common thing, right?

What makes the news so surprising is that it was unsolicited, for one.

And second, eBay is a much larger company than GameStop. As of the end of last week, GameStop’s market capitalization was $11.9 billion, while eBay’s was more than $46 billion.

However, that isn’t slowing down Cohen, who even sent a letter to the chair of eBay on Sunday, explaining that he wanted to cut costs, combine GameStop’s physical stores with eBay’s large online presence, and create a company that could go toe-to-toe with Amazon—something that Cohen told The Wall Street Journal in an interview.

For those who could read the tea leaves, Cohen did hint at GameStop taking a big swing back in January.

In an interview with CNBC, he mentioned that GameStop wanted to try to acquire a much bigger public company that could drastically increase GameStop’s value. That has now come to fruition with his bid for eBay.

Cohen, too, is putting the new proposed company’s success on his shoulders.

“Following close, I will serve as Chief Executive Officer of the combined company,” he wrote in his letter to eBay Chair Paul Pressler. “I will receive no salary, no cash bonuses, and no golden parachute – I will be compensated solely based on the performance of the combined company.”

How have the companies’ stock reacted?

As markets opened on Monday, shares of eBay (Nasdaq: EBAY) were up about 6.58% to $110.92. Notably, that’s not quite as high as the $125 that GameStop says it’s offering.

Shares of GameStop (NYSE: GME), which famously led the meme stock craze of 2021, were down 4.26% on Monday. However, the stock is up about 23% year to date.