The perplexing story of an unexpected corporate acquisition attempt has come to an end, at least for now. eBay’s board of directors formally turned down GameStop’s surprise bid to acquire the e-commerce company, marking a twist in this year’s strange corporate narrative. In a Tuesday morning press release, eBay’s board labeled GameStop CEO Ryan Cohen’s proposal as “neither credible nor attractive,” voicing concerns over GameStop’s financing strategy, the operational risks of merging, and questions regarding GameStop’s governance and executive incentives.
The rejection, signed by eBay’s board chairman Paul Pressler, was clear. The board believes eBay is better off independently, with a well-defined strategy and management team.
GameStop, the video game retailer made famous by the 2021 Reddit-fueled meme stock craze, announced on May 3 its unexpected $125 per share bid to acquire eBay. This proposal valued the deal at around $55.5 billion, a 46% premium over eBay’s closing price on February 4.
GameStop aimed to fund the acquisition using its $9.4 billion in cash and liquid assets, up to $20 billion from TD Securities, and GameStop common stock. Moreover, the company had quietly acquired a 5% stake in eBay before the bid was made public.
Analysts remained skeptical about the financing, and Cohen’s response in a CNBC interview—where he pleaded ignorance to questions about reaching $55 billion—was unconvincing. In response to Mashable’s request for clarity, GameStop shared a link to Cohen’s social media post, playfully noting he’d reached his eBay listings limit. This “leaning into the spin” approach characterized the overall bid.
GameStop’s plan for eBay involved transforming its 1,600 retail locations into hubs for order fulfillment—essentially aiming to compete with Amazon, a position eBay attempted a decade ago. Despite GameStop’s efforts, eBay opted to continue independently, a decision finalized this morning.