eBay has rejected a stunning $55.5 billion takeover bid from GameStop, calling the offer “neither credible nor attractive”. The online marketplace’s board of directors cited concerns over the deal’s financing and potential impact on eBay’s long-term growth.
The offer, made by GameStop CEO Ryan Cohen, was deemed unsolicited and uncertain, with analysts questioning how the smaller video game retailer would finance the massive deal. GameStop has around 1,600 stores globally, mostly in the US, and is worth about a quarter of eBay’s value.
eBay Takeover Bid
The rejected bid comes as eBay works to turn around its business, which has struggled in recent years due to increased competition from online sellers like Amazon. Despite this, eBay’s net profit rose to $418.4 million in 2025, up from $131.3 million the previous year.
GameStop, which rose to fame as a “meme stock”, had claimed that eBay could be more successful under its leadership and even rival Amazon. However, analysts have expressed skepticism over the proposal, citing concerns over GameStop’s debt and the potential risks of a combined entity.
eBay’s board of directors also cited “GameStop’s governance” as a factor in their decision to reject the offer. The decision may not be the end of the line for GameStop, as Cohen has indicated that he may take the proposal directly to eBay shareholders.
Implications and Next Steps
The rejection of the bid has significant implications for both companies, with eBay able to continue its turnaround plan and GameStop facing uncertainty over its next move. The decision also highlights the challenges of large-scale mergers and acquisitions, particularly when there are concerns over financing and governance.
As the online retail landscape continues to evolve, the rejected bid serves as a reminder of the complexities and risks involved in major deals. The outcome of this situation will be closely watched by investors and industry analysts, as it may have broader implications for the future of online marketplaces and retail.
