eBay has officially shut down GameStop’s blockbuster $56 billion takeover attempt, calling the proposal “neither credible nor attractive” in a sharp public rebuke that immediately intensified one of the most unexpected corporate standoffs of the year. The rejection, announced on Tuesday, May 12, comes shortly after GameStop CEO Ryan Cohen unveiled an aggressive plan to acquire the online marketplace giant in a cash-and-stock deal valued at $125 per share.
According to Reuters, eBay chairman Paul Pressler pointed directly to concerns surrounding the structure of the offer, including financing uncertainty and what the company described as risks to eBay’s long-term growth strategy. “eBay’s Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth,” Pressler said.
The company also emphasized the turnaround it has undergone under CEO Jamie Iannone, noting that eBay’s stock has climbed more than 200% since he took over six years ago.
eBay operates as a global online marketplace connecting buyers and sellers, while GameStop still relies heavily on physical retail stores and wholesale inventory sales. Cohen argued that combining the brands could create a stronger competitor to Amazon by using GameStop’s retail footprint as a physical commerce network.
He also pledged to cut billions in costs and said he would serve as CEO of the merged company without taking a salary or bonus package.
But Wall Street has largely remained skeptical. Analysts questioned whether GameStop—currently valued at roughly $12 billion—could realistically absorb a company worth several times more.
Concerns escalated after ratings agency Moody’s reportedly indicated that the merger would likely be credit-negative for eBay, potentially jeopardizing the investment-grade status required for the proposed financing package backed by TD Bank.
Cohen has continued signaling that he may try to bypass eBay’s board and appeal directly to shareholders. However, his current 5% stake in the company may not be enough to force a special shareholder meeting.
Traders on the prediction platform Polymarket now set the odds of a successful acquisition at just 13%, a figure that has dropped following eBay’s rejection.
The takeover attempt has become one of the most closely watched stories in business and retail culture this month, partly because Cohen remains a folk hero to many retail investors after helping ignite the 2021 meme-stock frenzy around GameStop.
At the same time, the proposal has rattled some longtime shareholders, including investor Michael Burry, who reportedly exited his GameStop position after the bid surfaced.
