eBay’s Rejection Letter To GameStop’s $56 Billion Bid Pulls Absolutely No Punches

GameStop announced a $56 billion unsolicited acquisition bid for eBay, proposing to pay approximately $125 per share through a 50/50 cash-and-stock deal. CEO Ryan Cohen declared his intent to transform eBay into “a legit competitor for Amazon,” warning that he would pursue a proxy fight if the board rejected his offer.

eBay’s board has formally rejected the proposal, with Chairman Paul Pressler calling it “neither credible nor attractive.” The board identified several critical concerns: eBay’s already-strong standalone business performance, substantial uncertainty about GameStop’s financing capabilities (GameStop has $9.4 billion in assets versus a much higher valuation for eBay), potential damage to eBay’s long-term growth and profitability, operational and leverage risks, and leadership concerns.

The rejection highlights the stark financial disparity between the companies—GameStop is valued at approximately $12 billion, significantly below the proposed acquisition price. Nevertheless, Cohen has indicated his resolve won’t waver, reportedly stating he is “not going away” and will continue pressuring eBay’s board.

Sources

• eBay’s Rejection Letter To GameStop’s $56 Billion Bid Pulls Absolutely No Punches
• eBay Rejects GameStop CEO Ryan Cohen’s $56 Billion Offer to Buy the Company, Calls It ‘Neither Credible nor Attractive’
• eBay Rejects GameStop Acquisition Bid
• “Your Proposal Is Neither Credible Nor Attractive” - eBay Rejects GameStop’s Takeover Bid
• eBay shoots down ’neither credible nor attractive’ $56 billion GameStop offer from CEO who says ‘I’m not going away. I’m a pain in the ass’
• eBay rejects GameStop acquisition offer
• ‘Your Proposal Is Neither Credible Nor Attractive’: eBay Rejects GameStop’s ‘Unsolicited’ Acquisition
• eBay rejects GameStop’s $56 billion acquisition bid