eBay has formally rejected a $56 billion takeover proposal from GameStop, setting the stage for a potentially explosive corporate battle between two of the most recognizable names in American retail and e-commerce. The offer, valued at approximately €47 billion, would have represented one of the most ambitious acquisitions ever attempted by a company the size of GameStop.
The board of eBay dismissed the proposal after questioning the financial viability of the deal, which was structured as a combination of cash and stock. Company executives also defended eBay’s current recovery strategy, arguing that recent growth and operational improvements make the business stronger as an independent company.
The rejection has intensified speculation that GameStop could now pursue a hostile takeover by appealing directly to eBay shareholders. GameStop CEO Ryan Cohen signaled that possibility last week, declaring his willingness to bypass eBay’s board entirely if necessary.
The proposed acquisition shocked Wall Street analysts and investors, many of whom doubted that GameStop — a company valued at roughly $12 billion — could realistically acquire a corporation nearly four times its size. eBay shares currently trade near $110, well below the proposed purchase price of $125 per share, further fueling skepticism about the seriousness and feasibility of the offer.
Cohen’s financing strategy has become a major source of concern. According to his own statements, GameStop planned to take on approximately $20 billion in debt to fund the acquisition. He argued that the combined company could generate around $2 billion in cost savings within less than a year after completing the merger. Cohen also reportedly criticized eBay CEO Jamie Iannone’s spending on advertising and marketing, describing it as wasteful and inefficient.
Despite those claims, investors remain unconvinced. Cohen has yet to clearly explain where the full financing would come from or how the complex transaction would be structured. During a recent interview on CNBC, the GameStop chief struggled to answer detailed questions about the proposal. When challenged about how he intended to complete such a massive deal while offering what critics viewed as an undervalued bid, Cohen appeared evasive, responding only that “we’ll see what happens.”
Although eBay’s dominance has faded from its early internet-era peak, the company still controls a powerful secondhand marketplace with approximately 136 million users spending around $80 billion annually on the platform. In 2025, eBay generated revenue of $11.6 billion, largely from transaction commissions, while also expanding earnings through advertising services and payment processing operations.
GameStop, meanwhile, continues to rely heavily on its core retail gaming business. The company operates roughly 2,200 stores across the United States, France and Australia after shutting down 227 locations last year. Its latest fiscal year produced revenue of about $3.6 billion, primarily from video game consoles and collectible merchandise.
The takeover proposal has triggered frustration among some GameStop investors who fear the strategy could place enormous financial strain on the company. Investor Michael Burry, famously portrayed in “The Big Short,” reportedly sold all of his GameStop shares following news of the bid. Burry criticized the acquisition plan as “trivial” and warned about the risks associated with heavy debt and shareholder dilution. His comments carried added weight because he had previously compared Cohen favorably to legendary investor Warren Buffett.
Cohen appears determined to replicate at eBay the aggressive cost-cutting measures he previously implemented at GameStop. His broader vision reportedly involves transforming GameStop’s remaining U.S. retail locations into a physical distribution and service network that could strengthen eBay’s position against Amazon in the rapidly evolving e-commerce market.
GameStop has also pointed to potential financing support from TD Securities, including the possibility of securing $20 billion through debt arrangements and additional capital through future stock issuances. However, with eBay firmly rejecting the initial proposal and investors questioning the economics behind the deal, the attempted takeover is rapidly becoming one of the most controversial corporate battles of the year.
