GameStop Reaffirms Pursuit of eBay Acquisition After Rejected Bid

According to Reuters reporters Svea Herbst-Bayliss and Jaspreet Singh, GameStop reaffirmed its commitment in a regulatory filing after eBay declined the company’s approximately $56 billion cash-and-stock proposal. The filing offered few new details about how GameStop plans to advance the bid but indicated that additional information about the proposed transaction will be released in the near future.

The renewed commitment comes weeks after GameStop Chief Executive Ryan Cohen surprised investors by proposing the acquisition, arguing that combining the two companies would create a stronger competitor to Amazon. Reuters previously reported that eBay rejected the offer shortly after it was submitted, describing it as unacceptable.

Alongside its acquisition update, GameStop projected adjusted earnings before interest, taxes, depreciation and amortization exceeding $600 million for fiscal 2026, compared with approximately $345.4 million reported for fiscal 2025. The earnings outlook helped lift the company’s shares in after-hours trading, according to Reuters.

GameStop has said it plans to publish additional materials outlining its strategic rationale and operational blueprint for combining the two businesses. Reuters reported that the company reiterated Friday that further information regarding the proposed transaction is forthcoming but did not specify a timeline or disclose additional financing details.

The proposed acquisition has drawn considerable attention because of the disparity in size between the two companies. GameStop’s market value remains substantially below that of eBay, prompting analysts and investors to question how the retailer would finance a transaction of this scale. Reuters previously reported that the proposal relies on a combination of cash and stock and has faced skepticism over funding and execution.

Related: eBay Rejects GameStop’s $56 Billion Takeover Offer, Citing Financing and Strategic Concerns

Beyond financing, a transaction combining two established online commerce businesses would likely face review by antitrust authorities in jurisdictions where the companies operate. Although GameStop’s stated objective is to strengthen competition against Amazon, regulators typically evaluate mergers by examining their effects on competition within specific product and geographic markets rather than broader claims about competing with larger industry players.

Competition agencies, including the U.S. Department of Justice and Federal Trade Commission, routinely assess major acquisitions for potential effects on market concentration, consumer choice, pricing, innovation and marketplace access. Depending on the companies’ operations, regulators in other jurisdictions, including the European Union and the United Kingdom, could also review a completed transaction if applicable filing thresholds are met.

At this stage, however, no competition authority has announced a formal challenge or enforcement action related to the proposed acquisition. Any regulatory review would occur only if the parties were to proceed with a transaction requiring merger approval.

Earlier this week, Reuters also reported that Cohen withdrew a proposed performance-based compensation package, saying GameStop’s leadership should remain focused on operating performance and its effort to acquire eBay. The move followed continued debate among investors over the feasibility of the proposed deal.

Source: Reuters