eBay has officially turned down GameStop, rejecting a $56 billion (approximately €49 billion) acquisition proposal that it described as “neither credible nor attractive.” The decision, announced in an official statement, comes after GameStop CEO Ryan Cohen revealed his plan to integrate the famous American marketplace in order to challenge Amazon.
A deal deemed too risky financially
eBay’s board of directors reviewed the offer with the support of independent consultants and determined that the financial and operational risks were too high. The proposal, which called for a combination of stock and cash, also drew skepticism from analysts, especially since GameStop’s market capitalization is less than one-fifth that of eBay. To complete the acquisition—which could push eBay’s value to $100 billion—GameStop would have to take on a significant amount of debt relative to its own market value, which stands at $11.9 billion.
This is therefore an ambitious and, in a way, risky proposition on the part of the video game retailer. Since 2023, with Cohen’s appointment, GameStop has embarked on a major restructuring process involving the closure of hundreds of retail locations and a gradual shift toward digital sales. At the same time, the product offering has expanded to include high-margin segments such as trading cards and retro hardware, areas where demand remains strong.
Toward the Threat of a Hostile Takeover
In response to this rejection, Cohen announced that, if eBay’s board of directors did not reconsider its position, GameStop would be prepared to launch a “hostile” takeover bid, appealing directly to the company’s shareholders. This type of offer, which does not require board approval, could further complicate an already complex situation.
eBay Chairman Paul Pressler also reiterated that GameStop’s offer was not deemed “plausible,” particularly in light of the risks associated with integrating the two entities and the uncertainty surrounding the financing plan. eBay further emphasized that the merger could have had negative impacts on long-term profitability and stated that it is “fully confident in its ability to generate sustainable growth with the current management team.”