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Business
May 12, 2026
Analyzed by GPT OSS 120B

GameStop’s $55.5bn bid for eBay rejected as ‘neither credible nor attractive’

AI Summary
eBay’s board has turned down GameStop’s unsolicited $55.5 bn takeover proposal, calling it neither credible nor attractive. The offer, valued at $125 per share, far exceeds GameStop’s $12 bn market cap and leaves a $16 bn financing gap.

GameStop announced a surprise $55.5 bn bid for online marketplace eBay, but the eBay board rejected the proposal, describing it as “neither credible nor attractive.” The decision follows a sharp drop in GameStop’s share price and unanswered questions about how the retailer would fund the deal.

eBay Board Rejects GameStop’s $55.5bn Takeover Offer

The eBay board, led by chair Paul Pressler, issued a letter to Ryan Cohen stating that the proposal was reviewed and ultimately declined. Pressler cited uncertainty around GameStop’s financing, borrowing capacity, and operational risks of a combined entity.

Valuation Gap Highlights Funding Shortfall

  • Offer price: $125 per share, total $55.5 bn
  • eBay valuation: $46 bn
  • GameStop market capitalisation: roughly $12 bn
  • Cash on hand pledged: $9.4 bn
  • Potential debt financing: $20 bn from TD Securities
  • Funding shortfall: about $16 bn relative to the offer amount

Strategic Stakes and Market Repercussions for Gaming and E‑commerce Sectors

GameStop has already built a 5% stake in eBay and argues its 1,600 remaining stores could provide a “national network for authentication, intake, fulfilment, and live commerce.” However, eBay is pursuing its own growth strategy, notably the acquisition of the fashion resale app Depop for $1.2 bn to attract younger consumers. The rejection underscores the widening gap between a meme‑stock‑driven retailer and a mature online marketplace.

What Lies Ahead for GameStop and eBay

Cohen has signalled willingness to launch a hostile bid and take the offer directly to eBay shareholders if the board remains uncooperative. Meanwhile, eBay’s focus on expanding its fashion‑forward portfolio suggests it will continue to prioritize organic growth and strategic acquisitions over a merger with a financially constrained GameStop. The next weeks will likely see heightened shareholder activism and further clarification of GameStop’s financing plan.