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eBay dismisses GameStop's $55.5bn acquisition proposal
eBay has formally rejected a $55.5 billion takeover bid from video game retailer GameStop, labeling the offer "unsolicited, neither credible nor attractive," according to a statement released by the online marketplace.
Financing doubts and strategic misalignment
Analysts had anticipated the rejection, citing concerns over how GameStop-a significantly smaller company-would finance the deal. eBay expressed "uncertainty" regarding the proposal's financial backing, despite GameStop securing a $20 billion debt commitment from TD Securities.
In a letter to GameStop CEO Ryan Cohen, eBay's board highlighted risks to its long-term growth and profitability, pointing to "operational risks, leadership structure," and "GameStop's governance" as key factors in their decision.
eBay defends turnaround progress amid competition
While eBay has faced challenges from rivals like Amazon, Etsy, and Temu, the company insisted its recovery strategy was yielding results. In 2025, eBay reported a net profit of $418.4 million, up from $131.3 million the previous year, despite a decline in sales.
eBay's board described the company as a "strong, resilient business" in its rejection letter, emphasizing confidence in its independent trajectory.
GameStop's meme-stock legacy and next steps
GameStop, known for its volatile meme-stock surge driven by retail investors, operates roughly 1,600 stores globally, primarily in the U.S. The company's market value is roughly a quarter of eBay's.
Cohen had previously stated that eBay could rival Amazon under his leadership. However, analysts, including Forrester's Sucharita Kodali, criticized the bid as financially burdensome, warning it would saddle eBay with GameStop's debt.
Shareholder appeal remains an option
GameStop is not abandoning its pursuit. Cohen indicated last week that if the board rejected the offer, he would take the proposal directly to eBay's shareholders. The BBC has reached out to GameStop for further comment but has not yet received a response.
