eBay Rejects GameStop’s $55.5 Billion Buyout Offer as “Not Attractive”

Ecommerce giant eBay announced that it has rejected a massive $55.5 billion unsolicited takeover offer from GameStop, dismissing the proposal as «neither credible nor attractive» despite the substantial premium offered to shareholders. The proposal, revealed through a letter sent by GameStop chairman and chief executive officer Ryan Cohen to eBay chairman Paul Pressler, offered to acquire all outstanding shares of eBay for $125 per share. The proposed transaction would have been financed through a combination of cash and GameStop stock. «GameStop Corp. (“GameStop”) is proposing to acquire all common stock of eBay Inc. (“eBay”) at $125.00 per share,» Cohen wrote in the letter. The proposal immediately triggered intense reactions across Wall Street because of the scale of the offer and the unlikely pairing between the two companies.

In the letter, Cohen argued the offer represented a substantial premium for eBay shareholders compared to the company's recent trading performance. «Our offer is $125.00 per share, comprising 50% cash and 50% GameStop common stock, with full shareholder election rights as to consideration type and pro-rata allocation,» he explained. Cohen further detailed the valuation behind the proposal, writing: «That represents a 46% premium to eBay's unaffected closing price on February 4, 2026, the day GameStop started accumulating its position in eBay, a 27% premium to the 30-day VWAP, and a 36% premium to the 90-day VWAP. Aggregate undiluted equity value is approximately $55.5 billion.» The proposal would have marked one of the largest acquisitions ever attempted by a company that only a few years ago was primarily associated with physical video game retail operations.

GameStop also attempted to reassure eBay's board regarding its ability to finance such a large transaction. Cohen explained that GameStop's growing balance sheet and outside financing commitments could support the acquisition despite concerns surrounding the company's historical volatility. «GameStop had ~$9.4 billion in cash and liquid investments as of January 31, 2026,» Cohen wrote. «The cash consideration will be funded from cash and liquid investments on GameStop's balance sheet and third-party equity and debt financing, which will be fully committed at execution of definitive documentation. A highly-confident letter from TD Securities for up to $20 billion is attached.» Cohen also emphasized that GameStop's leadership fully supported the transaction, stating plainly: «Our Board unanimously supports this proposal.» The letter framed the acquisition as part of a broader long-term transformation strategy for GameStop.

During an interview with The Wall Street Journal, Cohen described the proposed acquisition as an attempt to fundamentally reshape GameStop into a dominant ecommerce platform capable of competing directly with Amazon. «It could be a legit competitor to Amazon,» Cohen said about eBay during the interview. The strategy reflects Cohen's long-running focus on ecommerce, which previously helped transform online pet retailer Chewy into a multibillion-dollar company before he joined GameStop. Analysts noted that combining GameStop's massive retail investor following and cash reserves with eBay's marketplace infrastructure could theoretically create a major online commerce player spanning collectibles, electronics, gaming products and second-hand consumer goods. However, many investors also questioned whether GameStop possessed the operational expertise necessary to successfully manage a global ecommerce platform as large and complex as eBay.

eBay's board ultimately rejected the offer after reviewing the proposal with financial and legal advisers. In its official response, the company cited multiple concerns regarding the feasibility and credibility of the transaction. Among the reasons outlined by eBay were «uncertainty around GameStop's financing, potential leverage and operational risks, leadership structure concerns, valuation implications, and GameStop's governance and executive incentives.» The board concluded the proposal was «neither credible nor attractive» for shareholders despite the large premium attached to the offer price. Analysts noted that eBay's management may also have been concerned about exposing the company to GameStop's notoriously volatile stock price, which has experienced dramatic swings in recent years driven largely by meme-stock trading activity and speculative retail investor momentum.

The failed takeover attempt nevertheless highlights how dramatically GameStop has evolved since the meme-stock frenzy that placed the company at the center of financial markets in 2021. Under Cohen's leadership, the company has aggressively reduced debt, accumulated billions in cash and shifted away from relying solely on physical retail sales. At the same time, eBay has continued navigating increasing competition from Amazon, Walmart Marketplace, Temu and other ecommerce platforms fighting for online consumer traffic. While the proposed merger now appears unlikely to move forward following eBay's rejection, the episode has already intensified debate across the technology and financial sectors regarding consolidation, ecommerce competition and the future ambitions of GameStop under Cohen's leadership. Investors are now watching closely to see whether Cohen pursues another acquisition target or attempts to pressure eBay into reconsidering the proposal publicly.

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