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

By  |  May 12, 2026
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eBay on Tuesday formally rejected a $56 billion takeover proposal from GameStop, dismissing the offer as lacking credibility and appeal amid concerns over financing and long-term strategic fit. The online marketplace operator said the proposal from the smaller videogame retailer did not present a compelling path forward, according to Reuters.

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    In a statement released by the company, eBay Chairman Paul Pressler said the board had unanimously decided against engaging with the offer. “We have concluded that your proposal is neither credible nor attractive,” Pressler said. “eBay’s Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth.”

    Pressler also cited concerns related to the financing structure proposed by GameStop, the potential impact on eBay’s long-term expansion plans, and questions surrounding leadership arrangements in any merged organization, according to Reuters.

    eBay emphasized that its ongoing turnaround strategy under CEO Jamie Iannone has significantly improved performance. The company noted that its stock has gained 201% since Iannone took over six years ago, underscoring management’s confidence in its current trajectory.

    The unsolicited bid, unveiled last week by GameStop CEO Ryan Cohen, caught investors off guard. The proposal included a $20 billion debt financing commitment from TD Bank, but market participants have expressed skepticism over whether the half-cash, half-stock transaction could realistically close, according to Reuters.

    Market reaction reflected that uncertainty. eBay shares fell 1.3% on Tuesday to $106.68, remaining well below GameStop’s offer price of $125 per share. GameStop shares were also down nearly 2% in early trading. Over the past year, eBay shares have climbed 56%, while GameStop stock has fallen 18%, according to Reuters.

    Cohen, who has built a roughly 5% stake in eBay, has indicated he may attempt to take his proposal directly to shareholders, potentially through a special meeting. However, governance experts note that calling such a meeting would likely require a larger ownership position.

    Financing remains a central obstacle. Cohen has said he secured a debt commitment letter from TD Bank, contingent on the combined company receiving an investment-grade credit rating. However, Moody’s said last week that such a transaction would be credit negative for eBay. Sources familiar with the matter told Reuters that eBay believes it is highly unlikely a merged company would qualify for investment-grade status.

    Cohen has argued that combining the two companies could unlock operational efficiencies and cost savings, creating a larger retail and e-commerce competitor. He has also suggested GameStop’s 600 U.S. stores could serve as a physical distribution network to strengthen eBay’s competitive position against Amazon.

    Source: Reuters