GameStop's $55.5bn bid for eBay has been rejected by the online marketplace's board, which described the proposal as "neither credible nor attractive." The unsolicited offer, made earlier this month, consisted of half cash and half stock, but eBay's board determined it was not in the best interest of shareholders.
Background of the Bid
GameStop, the US video games retailer that became a household name during the 2021 meme stock craze, surprised markets with its bid for eBay. Despite GameStop's market valuation of roughly $12bn before the offer—almost a quarter of eBay's $46bn valuation—the company proposed acquiring eBay at $125 per share. The bid valued eBay at approximately $55.5bn.
eBay's Rejection
In a letter to GameStop CEO Ryan Cohen, eBay chair Paul Pressler stated that the board and its advisers had reviewed the proposal and "determined to reject it." Pressler cited uncertainty around GameStop's financing proposal, as well as concerns about borrowing and operational risks of a combined group. He emphasized that the offer was not credible or attractive.
Financing Shortfall
GameStop's offer relied on about $9.4bn in cash on hand and $20bn in potential debt financing from TD Securities. Combined with GameStop's market capitalisation of just over $10bn, the total falls about $16bn short of the $55.5bn bid. During a CNBC interview, Cohen dodged questions about how the company would make up the shortfall, saying he did not "understand the question."
Cohen's Vision
Cohen, who has been involved with GameStop since 2020, has vowed to launch an immediate cost-cutting plan and turn eBay into a "legit competitor to Amazon." He previously stated that GameStop was prepared to launch a hostile bid and take the offer directly to eBay's shareholders if the board was not receptive.
Market Reaction
GameStop's shares fell by more than 12% after releasing the takeover offer, particularly following Cohen's failure to explain the financing during the CNBC interview. The company has built up a 5% stake in eBay as part of its acquisition efforts.
GameStop's Transformation
During the Covid pandemic, a meme-fuelled investing frenzy drove GameStop shares from $3.25 in April 2020 to $347.50 in late January 2021—a rise of 10,692%. While the company has since shut hundreds of stores, including 590 in 2025, Cohen said the remaining 1,600 sites could offer eBay a "national network for authentication, intake, fulfilment, and live commerce."
eBay's Current Strategy
eBay, launched in 1995, is in the process of acquiring the British secondhand fashion resale app Depop from Etsy for about $1.2bn in cash, targeting younger, fashion-loving consumers. GameStop has been contacted for comment.
