eBay Slams GameStop's Unsolicited $56B Takeover Bid in Scathing Rejection
The board of directors at eBay wasted little time in shooting down GameStop’s $56 billion takeover bid, calling the unsolicited offer "neither credible nor attractive" in a blunt letter to Ryan Cohen, CEO of the video games reseller. Or in non-corporate speak, eBay's board just told GameStop's CEO to kick rocks, though not before doing its due diligence.
Cohen's surprise bid raised questions as to how exactly Cohen intended to go through with a purchase if eBay's board ultimately accepted the offer. The question led to an awkward exchange when Cohen appeared on CNBC's Squawk Box to discuss details of the proposed takeover.
When pressed on how GameStop would come up with the money, Cohen repeatedly stated that the offer was half in cash and half in stock, with $20 billion in debt financing secured from TD Bank. Still, the math never appeared to add up, and Cohen simply referred the hosts and viewers to GameStop's website for more details.
Here is the full interview...
Despite questions and concerns over how GameStop would finance the full offer, eBay says it "thoroughly reviewed" the proposal before ultimately rejecting it. In the rejection letter, eBay highlights uncertainty over GameStop's ability to fund its buyout bid as one of several reasons for declining to move forward with a deal.
"We have taken into account such factors as 1) eBay's standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on eBay's long-term growth and profitability, 4) the leverage, operational risks, and leadership structure of a combined entity, 5) the resulting implications of these factors on valuation, and 6) GameStop's governance and executive incentives," eBay states in its letter.
Cohen's unsolicited offer amounted to $125 per share, representing a 46% premium over eBay's closing price on February 4, 2026, the same day GameStop began increasing its position in the auction site. GameStop currently holds a 5% stake in eBay.
Shares of eBay are down around 2% to $106 in early morning trading at the time of this writing.
