eBay Rejects GameStop’s $56 Billion Acquisition Offer

Online marketplace eBay rejected a $56 billion acquisition offer from GameStop on May 12, 2026, describing the unsolicited proposal as neither credible nor attractive.

The eBay board of directors announced the decision after reviewing the surprise takeover bid. The company released the text of a letter sent to GameStop CEO Ryan Cohen, detailing the reasons for the rejection.

In the letter, the board cited eBay’s standalone prospects and highlighted significant uncertainty regarding how GameStop intended to finance the transaction.

The board further expressed concerns regarding the potential impact of the acquisition on the company’s long-term growth and profitability. Specific points of contention included the resulting leverage, operational risks, and the leadership structure that would exist within a combined entity.

The board also questioned the effect of these factors on the company’s valuation, as well as GameStop’s existing governance and executive incentives.

GameStop has not yet responded to requests for comment regarding the rejection.

Earlier in May 2026, the video game retailer submitted a nonbinding proposal to acquire 100% of eBay. The proposal stipulated that Ryan Cohen would serve as the CEO of the resulting combined organization.

In its proposal to eBay, GameStop criticized the e-commerce company’s operational efficiency. GameStop noted that eBay spent $2.4 billion on sales and marketing during fiscal year 2025, while adding only 1 million net active buyers.

GameStop argued that increased spending was not yielding a proportional increase in users for a marketplace that already possesses near-universal brand recognition.

To address these inefficiencies, GameStop proposed a plan to slash approximately $1.2 billion in sales and marketing costs. This was part of a broader goal to achieve $2 billion in yearly cost reductions within 12 months of closing the deal.

The bid aligns with a broader strategic shift for GameStop. Earlier in 2026, Cohen informed the Wall Street Journal that he was evaluating potential acquisition targets in the consumer and retail sectors to expand GameStop’s business beyond its core focus on video games and collectibles.

This expansionist strategy is supported by executive incentives. In January 2026, GameStop’s board approved a performance-based stock option award for Cohen. This award was specifically designed to incentivize the CEO to lead the company toward a $100 billion market capitalization, with the structure intended to align incentives with long-term stockholder value.

The acquisition attempt drew skepticism from market observers due to the vast difference in size between the two companies. EBay’s market capitalization is more than four times larger than that of GameStop.

Analysts raised questions about GameStop’s ability to fund a $56 billion deal. These concerns were compounded by a CNBC interview Cohen gave in the week prior to May 12, 2026, which left many Wall Street observers confused.

During the interview, Cohen declined to provide specific details on the financing of the acquisition despite repeated questioning. When asked for clarification, he responded:

It’s on our website. It’s half cash, half stock. Ryan Cohen, CEO of GameStop

The response subsequently went viral online and became the subject of various memes, further contributing to the perception of a lack of transparency regarding the deal’s financial viability.