eBay's board of directors on Tuesday officially rejected an unsolicited $55.5 billion acquisition offer from GameStop, dismissing the proposal in blunt terms and raising serious doubts about the video game retailer's ability to finance such a deal — though GameStop CEO Ryan Cohen, who has quietly amassed a 5 percent stake in eBay, may yet take the fight directly to shareholders.
eBay Chairman Paul Pressler delivered the rejection in a letter to GameStop CEO Ryan Cohen, stating plainly: "We have concluded that your proposal is neither credible nor attractive." The board said it had conducted a thorough review with independent advisors before arriving at its decision.
Pressler outlined six specific concerns that drove the board's conclusion. These included doubts about the viability of GameStop's financing arrangements, the leverage and operational risks that would accompany a combined entity, uncertainties around leadership structure, and questions about GameStop's own governance and executive incentive arrangements. eBay also pointed to its confidence in its own standalone growth prospects as a reason to reject the offer.
"We have taken into account such factors as 1) eBay's standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on eBay's long-term growth and profitability, 4) the leverage, operational risks, and leadership structure of a combined entity, 5) the resulting implications of these factors on valuation, and 6) GameStop's governance and executive incentives," Pressler wrote.
The rejection does not necessarily close the door on a deal. According to Al Jazeera, Cohen has hinted he may bypass the board and take the offer directly to eBay shareholders — a move that would constitute a hostile takeover attempt. Cohen has already built a 5 percent position in eBay, giving him a meaningful foothold from which to mount such a campaign. The Financial Times also noted that the rebuff could spur the video game retailer's chief to launch a hostile bid for the online marketplace.
The proposed acquisition would represent an extraordinary pivot for GameStop, a brick-and-mortar video game retailer that became the centre of a retail investor frenzy in early 2021. Under Cohen's leadership, the company has pursued a radical transformation away from its traditional retail roots, investing heavily in Bitcoin and exploring new business directions. Acquiring eBay — one of the world's largest online marketplaces with tens of millions of active buyers — would represent by far the most ambitious step in that transformation.
For eBay, the rejection reflects confidence that its existing strategy — focused on refurbished goods, collectibles, and niche categories — offers a more predictable path to long-term growth than a highly leveraged merger with a company still navigating its own identity crisis.
Analysis
Why This Matters
- The outcome could set a precedent for meme-stock-era companies attempting large-scale corporate acquisitions, testing whether retail-investor-fuelled balance sheets can translate into genuine M&A power.
- If Cohen pursues a hostile bid, eBay shareholders — not just the board — will have the final say, making this a story about corporate governance as much as deal-making.
- A prolonged takeover battle could distract both companies at a critical moment: GameStop is still redefining its business model, and eBay is competing against Amazon, Etsy, and emerging resale platforms.
Background
GameStop was once the dominant bricks-and-mortar video game retailer, operating thousands of stores globally. The rise of digital game downloads put the company under severe pressure through the 2010s, and by 2020 it appeared to be in terminal decline. That narrative was upended in early 2021, when retail investors coordinated on Reddit's WallStreetBets forum to drive the stock price from single digits to nearly $500, inflicting enormous losses on short sellers in one of the most dramatic short squeezes in market history.
Ryan Cohen, co-founder of the online pet retailer Chewy, joined GameStop's board in early 2021 and became CEO in 2023. He has since steered the company away from its retail identity, most notably approving a large Bitcoin investment in early 2025. GameStop now holds significant cryptocurrency reserves alongside a reduced but still operational retail footprint. The company has been widely seen as a vehicle searching for a new purpose.
eBay, founded in 1995, remains one of the internet's original e-commerce giants. After years of declining relevance against Amazon, the company has refocused on high-value categories including collectibles, luxury goods, refurbished electronics, and trading cards — areas where its auction format and buyer-seller community retain genuine advantages. The company has returned to modest profitability and investor confidence in recent years.
Key Perspectives
eBay's Board: The board is confident in its standalone strategy and clearly views GameStop's offer as speculative. Its letter questioned both the financial credibility of the bid and the wisdom of combining two companies with very different operational profiles, risk levels, and cultures. The strong language of the rejection — "neither credible nor attractive" — signals limited appetite for negotiation.
Ryan Cohen / GameStop: Cohen has positioned himself as a transformational investor willing to make bold, contrarian bets. His decision to quietly accumulate a 5 percent stake in eBay before making the offer suggests a deliberate, calculated strategy rather than an impulsive move. By hinting at a direct appeal to shareholders, he signals he is not ready to walk away.
Critics and Skeptics: Many analysts and observers question whether GameStop has the financial firepower and operational expertise to absorb a company the size of eBay. Questions about how a $56 billion deal would be financed — given GameStop's relatively modest revenue base — are central to the board's rejection and remain unanswered publicly. Critics also note that a heavily leveraged acquisition could destabilise both companies.
What to Watch
- Whether Cohen formally launches a hostile bid by taking the offer directly to eBay shareholders, bypassing the board entirely.
- Any regulatory or financial disclosures that shed light on how GameStop intends to finance the acquisition — debt structures, equity raises, or asset sales.
- Movement in both companies' share prices, which will signal how institutional investors are assessing the likelihood and desirability of a deal.