Online marketplace eBay has formally rejected a $55.5 billion takeover offer from video game retailer GameStop, dismissing the unsolicited bid as lacking both credibility and appeal. In a letter addressed to GameStop chief executive Ryan Cohen, eBay's board said it had studied the proposal carefully before concluding it was not in the company's interest, citing concerns over financing uncertainty, operational risks, and questions about the governance and leadership structure that would result from a combined entity.
The bid, made public roughly two weeks ago, was considered unusual from the outset. GameStop was valued at approximately $12 billion at the time of the offer — making it nearly four times smaller than eBay, a global online auction and e-commerce platform. To finance the deal, GameStop said it had secured a commitment from TD Securities to provide around $20 billion in debt, with the remaining half to be raised through new share issuances. eBay described it as highly uncertain whether this financing plan could actually be executed.
Cohen, a Canadian venture investor who has led GameStop for several years, argued that the retailer's physical store network — around 1,600 locations, mostly in the United States — could complement eBay's logistics needs, such as drop-off and returns for online orders. eBay's board rejected that reasoning, saying it believed it could grow and innovate faster on its own. Despite a recent decline in sales driven by intensifying competition from rivals including Amazon, Etsy, and Temu, eBay pointed to a turnaround in profitability, with net profit rising to $418.4 million in 2025 from $131.3 million the year before.
GameStop rose to global prominence in 2021 as a so-called "meme stock" — a company whose shares are aggressively bought by retail investors, often to counter professional short-sellers, causing dramatic price swings. That episode turned Cohen into a prominent figure among retail investors, though analysts have remained sceptical of his latest ambitions. Retail analyst Sucharita Kodali of Forrester Research described the proposal as not a "terribly good offer", warning it would burden eBay with significant debt.
The rejection may not be the end of the matter. Cohen previously signalled that if eBay's board said no, he was prepared to take the offer directly to eBay's shareholders — a move that could keep the saga alive and force a broader public debate over eBay's strategic direction.