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eBay rejects GameStop's $56B takeover bid
12 May 2026

eBay has turned down a massive $56 billion takeover offer from GameStop. The rejection comes amid concerns over the financing of the deal.

GameStop CEO Ryan Cohen had previously expressed his willingness to take the offer directly to eBay shareholders.

The proposed acquisition was aimed at integrating GameStop's physical stores into eBay's network, making it a more formidable competitor against Amazon.

Concerns over bid financing and market dynamics
Deal skepticism

Analysts and investors have raised doubts over the viability of GameStop's half-cash, half-stock bid for eBay.

The skepticism stems from the fact that GameStop is a $12 billion video game retailer trying to acquire a company with nearly four times its market value.

Further complicating matters, eBay's stock has been trading $20 below the offer price of $125 per share.

Investor backlash and Cohen's cost-cutting vision
Investor reaction

GameStop's bid strategy has not gone down well with some investors. Michael Burry, famous from The Big Short, sold all his shares in the company after the bid.

He called the deal strategy "pedestrian" and warned about potential debt load and shareholder dilution.

Despite these concerns, Cohen remains optimistic about replicating his cost-cutting strategies at GameStop to improve eBay's profitability.