On May 12, 2026, eBay formally rejected GameStop's unsolicited $56 billion takeover proposal, describing the bid as 'neither credible nor attractive' in a letter from eBay board chairman Paul Pressler [1]. GameStop CEO Ryan Cohen had offered to acquire eBay for $125 per share in a cash-and-stock deal, despite GameStop's significantly smaller market capitalization of approximately $10.3 billion compared to eBay's $48 billion [1].
EBay cited several concerns with GameStop's offer, including uncertainty regarding the financing proposal, operational risks, and the substantial debt load that would result from the transaction [1]. Cohen claimed GameStop had secured a $20 billion financing commitment from TD Securities and had $9 billion in cash on hand, but acknowledged a significant funding gap remained [1]. Wall Street analysts largely dismissed the deal, pointing to a lack of meaningful synergies between the two companies and expressing skepticism about the feasibility of the financing [1].
Cohen appeared on CNBC's 'Squawk Box,' where he provided limited details on the financing and suggested that GameStop could issue stock to complete the deal. He also outlined plans to operate eBay more efficiently by reducing headcount and marketing spend, and proposed using GameStop's 1,600 U.S. retail stores to authenticate and fulfill eBay orders, as well as serve as hubs for live commerce [1].
EBay reaffirmed confidence in its current management and highlighted its recent turnaround efforts, including a strategic focus on categories such as trading cards, collectibles, and used luxury goods. The company noted that its shares have risen 24% this year and emphasized its consistent capital returns to shareholders [1].
CONCLUSION
EBay's rejection of GameStop's takeover bid underscores significant doubts about the credibility and financing of the proposal, with analysts and eBay's board expressing skepticism about the deal's merits. The market reaction is likely to be pronounced given eBay's strong performance and ongoing turnaround strategy, while GameStop's ambitions face substantial hurdles. Overall, the event signals continued confidence in eBay's independent path and management.