finance
GameStop Makes $55.5 Billion Bid for eBay, Which Rejects Offer
eBay's board dismissed the unsolicited half-cash, half-stock offer at $125 per share as neither credible nor attractive, citing financing uncertainty and operational risks. GameStop, which had built a 5 percent stake, secured a $20 billion debt commitment from TD Securities but remains valued at roughly one-quarter of its target.
May 12, 1:24 PM·1m read6 sources
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" In a letter to GameStop CEO Ryan Cohen, eBay Chairman Paul Pressler said the board had completed its review and determined the offer failed to reflect the online marketplace's standalone prospects or long-term growth potential under its current leadership.
The half-cash, half-stock proposal valued eBay at $125 per share. GameStop had published a letter outlining the bid earlier in May 2026 after building a 5 percent ownership stake in the company.
4 billion in cash on hand, yet uncertainty around the full financing remained a central concern for eBay's board. Pressler wrote that the board took into account "the uncertainty regarding your financing proposal" along with operational risks and the leadership structure of a combined entity. eBay's board also cited GameStop's governance among the factors in its rejection.
The company stated it is a "strong, resilient business" well-positioned to continue driving sustainable growth under CEO Jamie Iannone. At the time of the bid, GameStop carried a market valuation of roughly $12 billion, about one-quarter the size of eBay's $46 billion valuation. , after shutting 590 locations in 2025.
3 million the previous year, even as sales declined amid competition from Amazon, Etsy and Temu. 2 billion in cash. eBay's stock has returned 201 percent since Iannone took the CEO role six years ago.
In the last 12 months it climbed 56 percent while GameStop's shares dropped 18 percent. 4 percent after the rejection announcement. 5 percent after the news.
2 percent from its record. Broader market moves reflected rising oil prices and a pullback in technology stocks. 97 per barrel, up from roughly $70 before the war with Iran.
97 percent. Traders are betting on a better than 1-in-3 chance that the Federal Reserve could hike rates by December 2026, according to CME Group data. 7 percent fall for CoreWeave.
