eBay Rejects GameStop's $56 Billion Takeover Bid, Calls It 'Neither Credible Nor Attractive'

Ryan Cohen Swings for the Fences. Misses.

On Tuesday, May 12, 2026, eBay's board officially rejected GameStop's $56 billion unsolicited takeover bid. eBay board chairman Paul Pressler sent CEO Ryan Cohen a letter stating the proposal was "neither credible nor attractive."

The Numbers Don't Lie

GameStop's market cap sits at roughly $10.3 billion, according to CNBC. eBay's is just over $48 billion. Cohen proposed buying eBay for $125 per share in a cash-and-stock deal totaling approximately $55.5 to $56 billion — depending on which outlet you read, and the difference is rounding.

GameStop is trying to buy something four times its own size.

The Financing Gap Is the Story Everyone Glossed Over

Cohen claimed GameStop had two things lined up: roughly $9 billion in cash on hand and a $20 billion financing commitment from TD Securities, the investment banking arm of TD Bank.

Add those up. You get $29 billion. The deal costs $56 billion. That's a $27 billion gap — and the $20 billion commitment wasn't even binding.

According to CNBC, TD's letter explicitly stated that its expression of confidence assumes the combined company maintains an investment-grade credit profile from at least two of the top three ratings agencies. That's a condition.

Moody's Ratings called the deal "credit negative" for eBay due to the "substantial increase in leverage implied by the deal structure," according to CNBC. Taking on this debt load would damage eBay's creditworthiness.

The financing had significant structural problems.

Cohen Made It Worse on Live TV

Cohen appeared on CNBC's Squawk Box to pitch the deal. According to CNBC, he was "awkward and at times combative" and "offered few details on how he would finance the deal."

When pitching the most audacious retail buyout in years, sparse details on financing is a liability.

eBay's Board Listed Its Reasons Specifically

Pressler's rejection letter — shared publicly by eBay and reported on by BBC, CNN, and CNBC — cited multiple factors:

• Financing uncertainty: GameStop hasn't proven it can actually pay for this
• Operational risks: combining a dying brick-and-mortar game retailer with a global e-commerce marketplace is problematic
• Debt load: the combined entity would operate under significant leverage
• GameStop's governance: eBay's board had concerns about how Cohen runs his own company
• Leadership structure of a combined entity: unclear command structure

eBay also made clear it likes where it's headed on its own. According to CNN, eBay shares have gained 24% this year. Its net profit in 2025 rose to $418.4 million, up from $131.3 million the prior year, per BBC — even as revenues dipped.

The eBay-on-eBay Subplot Nobody Should Ignore

According to CNN, during the bidding process, Cohen was literally selling GameStop merchandise on eBay — apparently to help fund the acquisition of eBay. A GameStop cap listed for $4,950. A branded mug for $3,151.

Whether that was a stunt, a joke, or performance art, the optics were striking. Selling mugs for $3,000 a pop on the target platform while pitching a $56 billion deal didn't project confidence.

What the Mainstream Coverage Missed

Most outlets focused on the horse-race drama — will Cohen appeal to shareholders? Will eBay fold? — without asking the harder question: Why does GameStop even want eBay?

Cohen's stated goal, according to CNN, was to create "a rival to Amazon." Wall Street analysts couldn't identify any synergy between the two companies. GameStop sells video games — mostly through physical stores at a time when physical game sales are collapsing. eBay is a peer-to-peer auction and marketplace platform.

A meme stock CEO with a pile of cash tried to buy something he couldn't afford and hadn't thought through.

What Happens Next

Cohen said before the rejection that if eBay's board said no, he'd take the offer directly to eBay shareholders, according to BBC. That's his remaining move.

It's unlikely to work. Shareholders tend to follow board recommendations on unsolicited bids, especially when the financing looks this shaky. GameStop's stock fell 4.5% in premarket trading following the rejection, per CNN.

What This Means for Regular People

If you own eBay stock, your board protected you from a deal that would have buried the company in debt. If you own GameStop stock, ask yourself whether you're investing in a business or a spectacle. Both things can go up. Only one of them makes sense.