eBay rejects GameStop’s $55.5bn takeover approach

The board of e-commerce company eBay has turned down an unsolicited takeover proposal from GameStop, calling the video game retailer’s bid “neither credible nor attractive”.

In a letter to GameStop chief executive Ryan Cohen, eBay chairman Paul S Pressler confirmed the board had completed a thorough review alongside independent financial and legal advisers before arriving at its decision.

Pressler said the bid was rejected due to multiple concerns, including unclear financing, potential harm to eBay’s long-term growth and profitability, and the operational and debt-related risks of merging the two companies.

He also pointed to concerns about GameStop’s governance structure and executive compensation incentives.

The board expressed confidence in eBay’s prospects as a standalone company.

Pressler’s letter read: “eBay is a strong, resilient business that has delivered meaningful results over the past several years. We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders.

“With its differentiated global marketplace and a clear strategy, eBay’s board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders.”

GameStop had submitted the non-binding, cash-and-stock proposal earlier this month, placing eBay’s value at $55.5bn.

The retailer said it planned to fund the cash component through its existing holdings, approximately $9.4bn as of 31 January 2026, supplemented by third-party financing, and disclosed a highly confident letter from TD Securities for up to $20bn.

GameStop’s rationale rested in part on what it identified as material cost reduction opportunities within eBay’s operations, targeting $1.2bn in sales and marketing expenditure, $300m in product development costs, and $500m in general and administrative spend.

The retailer also pointed to eBay’s $2.4bn sales and marketing outlay in fiscal 2025, which it noted had grown the platform’s active buyer base from 134 million to 135 million.

On that basis, GameStop projected that cost savings alone would increase eBay’s diluted earnings per share from continuing operations from $4.26 to $7.79 in the first full year after completion.

“eBay rejects GameStop’s $55.5bn takeover approach” was originally created and published by Retail Insight Network, a GlobalData owned brand.

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