eBay Officially Rejects GameStop's $55.5 Billion Acquisition Proposal: "Neither Credible Nor Attractive"

eBay Inc. has officially rejected GameStop Corp.'s $55.5 billion unsolicited acquisition proposal, causing a major stir in the corporate M&A market. On May 12, 2026, eBay's board of directors concluded that the merger proposal presented by GameStop CEO Ryan Cohen was "neither credible nor attractive" and decided not to accept it.

This decision is eBay's final response to the bold acquisition attempt that began in early May when GameStop offered $125 per share for eBay. Paul Pressler, Chairman of eBay's board, made it clear in a letter to CEO Cohen that the proposal carried a significant risk of undermining shareholder value.

After a thorough review of GameStop's proposal, eBay's board determined that the offer was inconsistent with the company's strategic direction and lacked financial viability. The board specifically cited the uncertainty of GameStop's proposed financing plan as a primary reason for the rejection.

We are confident that GameStop's proposal fails to provide substantive value to eBay shareholders, and that the risks associated with the proposed transaction structure far outweigh any potential benefits.

The $55.5 billion acquisition price offered by GameStop represented a significant premium over eBay's recent trading price. The core of the proposal was a consideration mix of 50% cash and 50% GameStop common stock, with eBay shareholders to be given an election option.

Opaque Financing and Market Skepticism

GameStop stated it would use approximately $9.4 billion in cash and liquid assets held as of January 31, 2026, as initial funding. The plan was to cover the remaining funds through a $20 billion "highly-confident" letter from TD Securities and the issuance of its own shares.

• Acquisition price offer of $125.00 per share
• Total enterprise valuation of approximately $55.5 billion
• Payment structure consisting of 50% cash and 50% GameStop common stock
• TD Securities' intent to support $20 billion in debt financing

However, eBay pointed out that the letter from TD Securities was merely a non-binding letter of intent. Furthermore, with GameStop's core competitiveness weakening—as evidenced by a 27% year-over-year decline in retail sales—the prevailing analysis is that accepting highly volatile GameStop stock as acquisition consideration would be a very risky gamble.

Market reaction also supported the concerns of eBay's board. When news of the acquisition proposal broke on May 4, eBay's stock price surged 7.4%, reflecting market expectations, while GameStop's stock price fell 3.4%, revealing investor doubts about its financing capabilities.

CEO Ryan Cohen's move is interpreted as part of a long-term strategy to transform GameStop from a simple video game retailer into a massive holding company. Cohen has already employed unconventional financial strategies, such as incorporating Bitcoin into the asset portfolio, and this attempt to acquire eBay is an extension of that approach.

Experts believe that despite eBay's rejection, GameStop will not back down easily. This is because the possibility remains open for CEO Cohen to pivot to a hostile takeover by directly persuading eBay shareholders or to launch a renewed offensive by revising the offer price.