eBay Turns Down GameStop’s $56 Billion Bid: "Neither Credible nor Attractive"
May 12, 2026 – 2:51 pm
eBay has formally rejected GameStop’s $56 billion takeover bid, informing CEO Ryan Cohen that his proposal is "neither credible nor attractive."
Paul Pressler, chairman of eBay’s board, communicated the decision in a letter that was unusually direct for M&A correspondence.
"The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it," Pressler wrote.
The board cited concerns about GameStop’s acquisition financing and the leverage and operational risks of combining the two businesses.
Cohen’s offer, revealed on May 4th, proposed a cash-and-stock deal at $125 per eBay share—a 20% premium to the previous closing price. TD Securities agreed to provide $20 billion in financing.
However, Moody’s immediately deemed the acquisition "credit negative" for eBay due to the anticipated leverage. Without an investment-grade rating, the TD facility would not materialize.
Additionally, Cohen attempted a unique funding approach: selling items from his GameStop office—including store signs and old carpet—on eBay to help fund the bid. Although his initial post was quickly suspended by eBay (later reinstated), the episode highlighted the bizarre nature of this potential takeover attempt.
Investor reactions have been mixed. Michael Burry of Scion Asset Management closed his GameStop position after Cohen’s announcement, stating: "Never confuse debt for creativity." While GameStop shares have fallen since the bid was announced, eBay shares have held above the $125 offer level, suggesting investors don’t expect the deal to materialize.
Cohen has indicated he plans to take the offer directly to eBay shareholders through a special meeting, but securing financing for a hostile bid would face the same challenges as the initial proposal. A combined GameStop-eBay entity with an additional $20 billion in acquisition debt is unlikely to maintain an investment-grade rating, which would render the TD commitment letter void.