eBay has rejected GameStop’s surprise $55.5 billion (£41 billion) takeover bid, calling the proposal “neither credible nor attractive”.
The online marketplace said its board and advisers had reviewed the unsolicited offer from the US video games retailer and decided not to engage.
GameStop, led by chief executive Ryan Cohen, tabled the cash-and-stock proposal earlier this month, offering $125 a share for eBay.
However, the retailer’s own market value stood at roughly $12 billion before the bid, far below eBay’s valuation of about $46 billion.
In a letter to Cohen, eBay chair Paul Pressler said the board had considered the “uncertainty” around GameStop’s financing plans, as well as the borrowing, operational risks and leadership structure of a combined business.
GameStop said it would fund the deal using around $9.4 billion in cash and liquid investments, alongside up to $20 billion in debt financing from TD Securities.
The company has also built a five per cent stake in eBay and has said it could take the offer directly to shareholders if the board did not engage.
Cohen has argued eBay could become a stronger rival to Amazon under his leadership, with GameStop’s remaining 1,600 US stores used for authentication, intake, fulfilment and live commerce.
GameStop also claimed it could deliver $2 billion of annual cost savings within 12 months of completion.
However, questions over the funding of the offer have weighed on GameStop’s shares, which have fallen since the proposal was announced.
The retailer, which became one of the best-known “meme stocks” during the 2021 trading frenzy, has been shrinking its store estate and closed 590 shops in 2025.
eBay said it remained confident in its standalone strategy and current management team.
The marketplace is also in the process of buying UK-founded secondhand fashion app Depop from Etsy for around $1.2 billion (£890 million), as it looks to strengthen its appeal with younger shoppers.
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