Can GameStop Really Pull Off Its Rejected $56 Billion Takeover Bid for eBay? Here's Where It Stands

GameStop's audacious bid to acquire eBay has become one of the more unlikely storylines in corporate America this year, with the video game retailer publicly reaffirming its commitment to the deal even after eBay's board formally rejected the unsolicited offer as "neither credible nor attractive." Whether the takeover ultimately happens remains genuinely uncertain, but the facts of where the deal currently stands offer a clearer picture than any single probability estimate could.

The Offer on the Table

GameStop submitted a non-binding proposal on May 3 to acquire 100% of eBay's outstanding shares for $125 per share, split evenly between cash and GameStop common stock. The offer represented a 46% premium to eBay's closing price on February 4, the date GameStop began accumulating its position in the company. At the time of the announcement, GameStop had already built a 5% economic stake in eBay through a combination of derivatives and beneficial ownership of common stock.

The proposal valued eBay's aggregate undiluted equity at approximately $55.5 billion, representing a 27% premium to eBay's 30-day volume-weighted average price and a 36% premium to its 90-day average. GameStop said it planned to fund the cash portion of the deal using roughly $9.4 billion in cash and liquid investments on its balance sheet as of January 31, combined with third-party acquisition financing, for which it had secured a highly confident letter from TD Securities covering up to $20 billion.

GameStop's Strategic Rationale

GameStop Chief Executive Ryan Cohen framed the proposal as an opportunity to apply his cost-cutting approach to eBay's operations while integrating GameStop's approximately 1,600 U.S. retail stores into a physical network designed to help eBay better compete with Amazon. Cohen, who owns roughly 9% of GameStop, said he envisioned leading the combined company as chief executive while forgoing salary and cash bonuses if the deal closed.

"We have the ability to issue stock in order to get the deal done," Cohen told CNBC in an interview following the announcement.

GameStop pointed specifically to what it characterized as inefficient spending at eBay, noting the company spent $2.4 billion on sales and marketing in fiscal 2025 while adding only about 1 million net active buyers, growing its buyer base from 134 million to 135 million, an increase of less than 0.75%. GameStop projected it could achieve $2 billion in annualized cost reductions within twelve months of closing, including roughly $1.2 billion from sales and marketing alone.

eBay's Board Rejects the Offer

eBay's board formally rejected GameStop's proposal on May 12, following what the company described as a thorough review conducted with the support of financial and legal advisors. In a public response letter addressed to Cohen, eBay's board did not mince words about its assessment of the offer.

"We have concluded that your proposal is neither credible nor attractive," eBay's board wrote, citing factors including eBay's standalone prospects and uncertainty surrounding GameStop's financing.

Market reaction to the initial announcement reflected similar skepticism about the deal's viability. eBay's stock surged on news of the offer, while GameStop's own shares tumbled, a divergence that suggested investors viewed the bid as more likely to benefit eBay shareholders through a potential premium than to represent a credible, executable transaction for GameStop.

GameStop Digs In Despite the Rejection

Rather than walking away following the board's rejection, GameStop has repeatedly reaffirmed its commitment to pursuing the acquisition. The company pledged on June 26 that it would continue pursuing the proposed takeover, and followed up with a similar reaffirmation in a subsequent regulatory filing, though it offered little additional explanation of how it intends to move the deal forward absent eBay's cooperation.

Alongside its renewed commitment to the deal, GameStop has also touted a strong earnings outlook, projecting adjusted EBITDA for fiscal 2026 to surpass $600 million, up significantly from the $345.4 million it reported in fiscal 2025. GameStop shares rose more than 2% in after-hours trading following that announcement.

The Fundamental Obstacles

Several structural realities work against GameStop's bid succeeding without eBay's cooperation. eBay's board has already formally rejected the offer and shown no indication of reconsidering, meaning any path forward would likely require GameStop to pursue a hostile approach, such as taking its offer directly to eBay shareholders or attempting to replace board members through a proxy contest, either of which would represent a significantly more complex and costly undertaking than a negotiated deal.

Regulatory approval also remains an open question. Any transaction of this scale would require antitrust clearance, and GameStop has already filed the necessary Hart-Scott-Rodino notification alongside its Schedule 13D disclosure. Additionally, the deal would require approval from shareholders of both companies, a standard closing condition that becomes considerably harder to satisfy when the target company's board is actively opposed to the transaction.

Where Things Stand Now

As of GameStop's most recent public statements, the company continues to describe the eBay acquisition as an active priority, even as it has not detailed a concrete strategy for overcoming the board's rejection. Whether GameStop escalates its approach into a formal hostile takeover attempt, walks away from the pursuit entirely, or continues its current pattern of periodic reaffirmations without further action remains to be seen.

Given eBay's firm rejection, the significant premium being demanded, and the complexity involved in pursuing an unwanted acquisition of a company nearly four times GameStop's market value, most market observers who have covered the situation have expressed considerable skepticism that the deal will ultimately close on GameStop's original terms. But with Cohen having built a reputation for unconventional corporate moves during his tenure leading GameStop's transformation, the situation remains one that continues to draw close attention from investors and analysts tracking both companies.