New Delhi, May 4 -- Video game retailer GameStop has proposed to buy e-commerce giant eBay for $55.5 billion. The proposed deal values eBay at $125.00 per share, representing a 20% premium over eBay's closing price at the NSE on Friday. Gamestop also quietely began accumulating stake in eBay since last week.

The company revealed in a statement that it has already built around 5% stake in eBay since 4 February. Gamestop says the deal would be funded with a mix of cash and GameStop stock. The company also claims to have secured a commitment from TD Bank to provide around $20 billion in debut financing for the deal.

Notably, the proposed deal mark a rare scenario where the company has attempted to buy an entity almost four times its size. ...