The latest chapter in video game retailer GameStop's tumultuous story is unfolding, as the company has announced plans to make a deal to buy eBay for $55.5 billion.

GameStop said in a news release that it submitted a "non-binding proposal" to buy 100% of eBay at $125 per share in cash and stock, at 50% each. This would be about a 20% premium over where eBay's stock was trading on Friday and a 46% premium to eBay's closing price on February 4 this year. That was the day that GameStop started buying eBay stock. Today, it owns about 5% of eBay's outstanding stock.

CEO Ryan Cohen told The Wall Street Journal, "There is nobody who is more qualified, based on my experience, to run the eBay business," he said.