eBay has rejected a $55.5 billion takeover proposal from GameStop, ending an unexpected bid that would have brought together one of the world’s largest online marketplaces with a video game retailer still navigating a difficult transformation.
The company described the approach as “unsolicited” and said it was “neither credible nor attractive,” effectively dismissing the proposal shortly after it was made public.
The decision came as little surprise to market observers, who had already questioned the logic of the deal given the substantial gap in scale between the two companies and the complexity of financing such a large acquisition. eBay also highlighted uncertainty around the funding structure and raised concerns about the risks involved in a highly leveraged transaction of this size.
Although eBay continues to operate in a highly competitive e-commerce landscape, with pressure from major players such as Amazon and fast-growing platforms including Etsy and Temu, it has maintained that its restructuring efforts are beginning to show results. The company has focused on improving efficiency, tightening costs, and strengthening profitability even as revenue growth has remained uneven.
GameStop, meanwhile, has become one of the most recognisable names in retail investing over recent years after its shares surged during the so-called meme stock phenomenon. The company, once known primarily for its physical video game stores, saw its valuation swing dramatically as retail traders drove intense volatility in its stock price.
In a formal response to GameStop chief executive Ryan Cohen, eBay’s board rejected the proposal and reaffirmed its belief in the company’s standalone direction, describing it as a “strong, resilient business.”
The board said it had taken several factors into account, including “the impact of your proposal on eBay’s long-term growth and profitability,” as well as concerns over “operational risks, and leadership structure of a combined entity.” It also cited “GameStop’s governance” in its assessment before concluding against the deal.
Despite the rejection, GameStop could still escalate its approach by appealing directly to shareholders, bypassing eBay’s board. Cohen has previously indicated he would consider that option if necessary, leaving open the possibility of further pressure in the coming weeks.
eBay reported a net profit of $418.4 million in 2025, a significant increase from $131.3 million the previous year, even as overall sales declined. The figures underline a company that remains profitable despite ongoing shifts in consumer behaviour and rising competition across the online retail sector.
GameStop operates around 1,600 stores globally, most of them in the United States, and remains worth a fraction of eBay’s market value. The company said it had secured a commitment letter from TD Securities for about $20 billion in debt financing to support its proposal, although analysts have questioned whether the structure would have placed too much strain on the combined company.
Cohen has argued that eBay could achieve stronger performance under his leadership and potentially compete more directly with Amazon. However, analysts, including Sucharita Kodali of Forrester, have been sceptical, warning that the proposal may have exposed eBay to unnecessary financial risk.
For now, eBay appears focused on its independent strategy, while GameStop weighs whether to pursue shareholders or step away from a bid that has already been firmly rejected.