Ebay Rejects GameStop’s $56B Bid, Cites Financing Risk

On May 12, 2026, Ebay’s board rejected an unsolicited $56 billion acquisition proposal from GameStop CEO Ryan Cohen, declining to engage further and citing uncertainty about the financing and operational risks of the proposed combination.

The proposal, first made public on May 3, valued Ebay at $125 per share and called for a 50/50 mix of cash and GameStop common stock. That offer equated to about a 46% premium to Ebay’s unaffected price in early February. Cohen’s plan described using GameStop’s roughly 1,600 U.S. stores as fulfillment and intake hubs and projected about $2 billion in annualized cost savings in the first year after closing.

Ebay’s board flagged concerns about the deal’s funding. The pitch relied on a TD Securities “highly confident” letter backing roughly $20 billion in third-party debt, and credit-rating firm Moody’s had labeled the proposed transaction credit negative. The board noted the financing approach and expected leverage raised material execution and credit risks.

In a letter to Cohen, Ebay Chairman Paul S. Pressler said the board and its independent advisors had reviewed the proposal and found it “neither credible nor attractive.” The letter defended Ebay’s management and current strategy and identified significant questions about the feasibility of integrating the two companies under the terms offered.

Ebay told investors it will continue to pursue its turnaround plan focused on high-value collectibles and authentication services. The company reported about 136 million active users and roughly $11.6 billion in revenue for 2025, and it pointed to a 2024 strategic partnership related to auction services as part of its recent initiatives.

Cohen proposed leading the combined company as chief executive with no base salary or bonuses and tying compensation to performance. The board raised governance concerns about GameStop’s leadership structure and executive incentives and how those would be integrated into Ebay’s operations.

Market response was muted for Ebay and negative for GameStop. Ebay shares showed little movement and had been trading below the $125 offer price since the bid was announced. GameStop shares fell about 4% in early trading on May 12, 2026. Some investors also noted GameStop’s holdings of bitcoin as an additional factor.

No further meetings between the companies were scheduled at the time of the announcement. Cohen has previously indicated a willingness to take his proposal to shareholders; GameStop will consider its next steps after the board’s rejection.