eBay Rejects GameStop’s $56 Billion Takeover Bid

CNBC reported Tuesday that eBay’s board has formally turned away GameStop’s unsolicited $56 billion eBay takeover bid, dismissing the approach as lacking both credibility and appeal.

eBay Board Delivers a Blunt Rejection

eBay board chairman Paul Pressler signed a letter confirming the board had reviewed the proposal with independent advisors. It concluded the offer fell short on every meaningful measure. The company cited unresolved financing questions, significant operational risk, and the debt burden a completed transaction would generate.

GameStop CEO Ryan Cohen unveiled the bid last week. He proposed acquiring eBay at $125 per share through a mixed cash-and-stock structure. The size of the ambition was striking. eBay carries a market cap just above $48 billion. GameStop’s own valuation sits near $10.3 billion.

Financing Gap Draws Heavy Scrutiny

Cohen pointed to a $20 billion financing commitment from TD Securities, a unit of TD Bank, alongside roughly $9 billion in GameStop’s existing cash reserves. The gap between those figures and the total deal value remained a central concern. The TD Securities letter, which eBay released publicly, is non-binding. It also stipulates that TD’s confidence depends on the combined company maintaining an investment-grade credit rating from at least two major agencies.

Moody’s warned last week that the proposed deal structure would be credit negative for eBay given the sharp rise in leverage it would require. Wall Street analysts broadly echoed that view, pointing to a weak strategic rationale and limited synergies between the two businesses.

A Company in the Middle of Its Own Turnaround

eBay has spent recent years refocusing its marketplace under CEO Jamie Iannone. The company doubled down on specialist categories including trading cards, collectibles, and pre-owned luxury items. That effort has helped differentiate its platform from larger rivals. eBay shares are up roughly 24% so far this year.

Cohen argued during a combative appearance on CNBC’s Squawk Box that eBay’s marketing spending had grown bloated without producing meaningful user growth. He also suggested GameStop’s roughly 1,600 U.S. retail locations could serve as authentication and fulfillment hubs for eBay orders.

Cohen Signals He May Go Directly to Shareholders

Before the rejection arrived, Cohen had flagged a willingness to bypass the board entirely and take the proposal straight to eBay’s shareholder base. It remains unclear whether he intends to follow through. GameStop did not immediately respond to requests for comment following Tuesday’s announcement.

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