eBay strongly rejects $56 billion acquisition offer from GameStop
eBay Inc. did not mince words in its public announcement that it will not be accepting an unsolicited, non-binding buyout proposal from GameStop.
In an open letter on its corporate website addressed to GameStop CEO Ryan Cohen, eBay said its board has determined it will reject the long-struggling video game retailer’s May 3 proposal to acquire 100% of the company at $125 per share in 50% cash and 50% stock, or roughly $55.5 billion.
[READ MORE: GameStop offers to purchase eBay in $56 billion deal]
“We have concluded that your proposal is neither credible nor attractive,” Paul S. Pressler, chairman of the board of eBay, said in the post. “We have taken into account such factors as eBay's standalone prospects, the uncertainty regarding your financing proposal, the impact of your proposal on eBay's long-term growth and profitability, the leverage, operational risks, and leadership structure of a combined entity, the resulting implications of these factors on valuation, and GameStop's governance and executive incentives.”
In January 2026, GameStop unveiled a performance award worth roughly $35 billion that is designed to incentivize Cohen to achieve “extraordinary growth.” At that time, Cohen said GameStop was considering “a major acquisition of a publicly traded firm in the retail or consumer arena.”
GameStop’s offer represents a 46% premium to eBay’s unaffected closing price on Feb. 4, 2026, the day the company started accumulating its position in eBay. GameStop previously said it has built a 5% economic stake in eBay through derivatives and beneficial ownership of common stock and that it has received a letter from TD Securities for up to $20 billion in financing. The full GameStop proposal letter and accompanying materials are available here.
Some industry analysts have been skeptical of the deal. GameStop’s market value is just below $12 billion, while eBay’s is $46 billion, reported CNBC.
"We are offering half cash, half stock, and we have the ability to issue stock in order to get the deal done," Cohen told CNBC. "But the full details of the offer on our website. “We will see what happens.”
GameStop looks to collectibles, digital products and currency
GameStop reportedly closed more than 470 U.S. stores during its fourth quarter of fiscal 2025 (ended Jan. 31, 2026) and in its third-quarter earnings report said it had closed 590 stores in the U.S. during the previous fiscal year as part of a “store portfolio optimization review.”
However, GameStop’s most recent fourth-quarter earnings rose amid tight cost controls even as its sales continued to fall. Collectibles, a strong category for eBay, were a bright spot, with sales rising to $365 million from $270.6 million. The category now makes up about one-third of GameStop's total sales, up 21% year over year.
In addition to increasing its presence in the lucrative collectibles space, including the recent launch of a digital trading card platform called “Power Packs,” other digital steps GameStop has taken to boost its financial performance include investing in bitcoin as a treasury reserve asset.
GameStop sees synergies, cost reductions
GameStop said it will deliver $2 billion of annualized cost reductions within twelve months of closing. On cost reductions alone, GameStop predicted eBay’s diluted GAAP earnings per share from continuing operations would increase from $4.26 to $7.79 in the first year.
Beyond cost, GameStop’s says its roughly 1,600 US retail locations would give eBay a “national network for authentication, intake, fulfillment, and live commerce.”
If the deal goes through, following close, Cohen, who has held his current position since January 2021, will serve as CEO of the combined company and be compensated solely based on the performance of the combined company.
GameStop has not yet publicly commented on eBay’s decision to reject its offer.
This is a developing story, check back for updates.
