eBay Declines GameStop's $56 Billion Merger Proposal Amid Financial Skepticism
San Jose, Tuesday, 12 May 2026.
On May 12, 2026, eBay rejected GameStop’s $56 billion buyout offer. Management dismissed the ambitious proposal from a company nearly four times smaller as financially unviable and unattractive.
Rejection Details
EBay (NASDAQ: EBAY) formally declined the $56 billion takeover bid from GameStop (NYSE: GME) on Tuesday, May 12, 2026 [1]. The proposal, initiated by GameStop CEO Ryan Cohen, was structured as a cash-and-stock deal [2]. However, eBay’s board determined the offer to be ‘neither credible nor attractive’ [1][3].
Financial Concerns
The primary concerns cited by eBay’s chairman, Paul Pressler, revolved around the financing of the deal and the potential increase in debt for eBay [2]. Moody’s had previously indicated on May 4, 2026, that the acquisition would be ‘credit negative’ for eBay, potentially increasing its debt from $7 billion to $31 billion [1][2]. Despite TD Bank’s confidence in raising $20 billion for the deal, contingent upon the combined entity achieving investment-grade status, eBay remained skeptical [2].
Market Reaction
Following the rejection, eBay’s stock experienced a slight downturn, falling 1% to $107, while GameStop’s shares declined by 4% on May 12, 2026 [3]. It’s worth noting that eBay’s stock has increased 24% year-to-date [1]. The proposed offer of $125 per share has not been met by eBay’s stock price since the initial bid earlier in May 2026 [3].
GameStop’s Perspective
Ryan Cohen had envisioned leveraging GameStop’s 1,600 U.S. retail stores for order authentication and fulfillment, aiming to create synergies and cost savings [1]. He also proposed cutting $2 billion in costs and rapidly repaying debt [2]. Cohen even offered to serve as the combined company’s CEO without a salary, cash bonuses, or golden parachute [3]. Despite the rejection, Cohen may still pursue taking the offer directly to eBay shareholders [1][3].