eBay Rejects GameStop's £43.8 Billion Takeover Bid, Citing Credibility Concerns
Online marketplace eBay has rejected a £43.8 billion ($55.5 billion) takeover proposal from video game retailer GameStop, describing the offer as 'unsolicited' and 'neither credible nor attractive'. The decision was widely anticipated by analysts, given GameStop's significantly smaller market capitalisation compared to eBay.
eBay's Board of Directors, in a letter to GameStop chief executive Ryan Cohen, cited 'uncertainty' regarding the financing structure of the deal. The company emphasised its perception of eBay as a 'strong, resilient business', with its own turnaround strategy showing positive results, despite increased competition from platforms like Amazon, Etsy, and Temu. The company's net profit for 2025 reportedly increased to $418.4 million, a rise from $131.3 million the previous year, even with a dip in sales.
The rejection letter further detailed concerns over 'the impact of your proposal on eBay's long-term growth and profitability', alongside 'operational risks, and leadership structure of a combined entity'. Critically, 'GameStop's governance' was also listed as a factor in the decision to decline last week's bid.
GameStop, which gained prominence as a 'meme stock', had stated its intention to secure approximately $20 billion in debt financing from TD Securities to facilitate the takeover. Cohen had suggested that under his leadership, eBay could potentially rival Amazon. However, industry analysts, such as Sucharita Kodali of Forrester, previously noted that the proposal appeared problematic, particularly due to the potential burden of GameStop's debt on eBay.
Despite the board's rejection, Cohen has indicated a willingness to present the acquisition proposal directly to eBay shareholders, an avenue that remains open for GameStop.
