eBay has formally rejected GameStop’s unsolicited $55.5 billion acquisition proposal, with the online marketplace saying the offer was “neither credible nor attractive.”
In an open letter addressed to GameStop CEO Ryan Cohen, eBay chairman Paul Pressler said the company’s board unanimously decided to reject the proposal, which would have seen GameStop acquire eBay for $125 per share in a deal split evenly between cash and stock.
“We have concluded that your proposal is neither credible nor attractive,” Pressler wrote.
He said the board considered eBay’s standalone growth prospects, uncertainty around GameStop’s financing plan, operational and leadership risks tied to a combined business, and concerns surrounding GameStop’s governance structure and executive incentives.
GameStop submitted the non-binding proposal on May 3 after building what it described as a 5% economic stake in eBay through derivatives and beneficial ownership of shares.
The retailer said the offer represented a 46% premium to eBay’s unaffected closing share price on Feb. 4, when it began accumulating its position.
The proposal relied partly on up to $20 billion in financing support from TD Securities, alongside GameStop’s own cash and stock.
If completed, Cohen said he would serve as CEO of the combined company and receive compensation tied solely to company performance.
Related Story
Analysts had questioned the feasibility of the deal given the size disparity between the two businesses. GameStop’s market value sits at roughly $12 billion, compared with eBay’s approximately $46 billion valuation.
Despite ongoing sales declines and a shrinking store footprint, GameStop has increasingly positioned itself around collectibles and digital initiatives.
The company closed hundreds of stores during fiscal 2025 as part of an optimization program, but collectibles sales climbed to $365 million in the fourth quarter, accounting for roughly one-third of total revenue.
GameStop argued the acquisition would create operational synergies and generate $2 billion in annualized cost savings within a year.
The retailer also said its approximately 1,600 U.S. stores could function as a national network for authentication, fulfillment and live-commerce services for eBay sellers.
The company has also expanded into digital products, including launching a digital trading card platform called Power Packs and investing in bitcoin as a treasury reserve asset.
GameStop has not yet publicly responded to eBay’s rejection.
Click here to sign up to Retail Gazette‘s free daily email newsletter
