Cohen told The Wall Street Journal that $GME has built a roughly 5% stake in $EBAY and was offering $125 a share in cash and stock, a roughly 20% premium to its closing price on Friday.

Cohen said he has a commitment letter from TD Bank to provide around $20 billion in debt financing to help make a deal possible.

If $EBAY isn't receptive to the proposal, Cohen said he was prepared to run a proxy fight and take his offer directly to shareholders. $GME is expected to make the details of its offer public later Sunday.