GameStop, the US video game retailer that became a household name during the 2021 meme stock frenzy, has seen its $55.5bn (£41bn) unsolicited bid for eBay rejected by the online marketplace's board. In a letter to GameStop CEO Ryan Cohen, eBay chair Paul Pressler described the proposal as 'neither credible nor attractive'.
Bid Details and Market Reaction
Earlier this month, GameStop made an unsolicited offer to acquire eBay at $125 per share, using a combination of cash and stock. The bid came despite GameStop's market valuation of roughly $12bn at the time, significantly lower than eBay's $46bn valuation. Following the announcement, GameStop's shares fell by over 12%, particularly after Cohen failed to explain the financing during a CNBC interview.
GameStop has built a 5% stake in eBay and proposed using about $9.4bn in cash on hand and $20bn in debt financing from TD Securities. However, even adding GameStop's market capitalisation of just over $10bn, the total falls about $16bn short of the offered amount. Cohen dodged questions about the funding gap, stating he did not 'understand the question'.
eBay's Rejection and Concerns
In his letter, Pressler stated that eBay's board and advisers reviewed the proposal and 'determined to reject it'. He cited uncertainty around GameStop's financing proposal, borrowing, and the operational risks of a combined group. Cohen had previously warned of a potential hostile bid if the board was not receptive.
GameStop's Strategy and Future Plans
Cohen, who has been involved with GameStop since 2020, believes eBay could be worth much more under his leadership. He vowed to launch an immediate cost-cutting plan and transform eBay into a 'legit competitor to Amazon'. GameStop has shut hundreds of stores, including 590 in 2025, but Cohen said the remaining 1,600 sites could offer eBay a 'national network for authentication, intake, fulfilment, and live commerce'.
Meanwhile, eBay is in the process of acquiring British secondhand fashion app Depop from Etsy for about $1.2bn in cash, targeting younger, fashion-loving consumers. GameStop has been contacted for comment.
