"Neither Credible Nor Attractive": eBay Rejects GameStop's Takeover Bid
eBay's board released a statement on Tuesday morning, rejecting GameStop CEO Ryan Cohen's unsolicited, non-binding acquisition proposal, calling it "neither credible nor attractive."
"We have concluded that your proposal is neither credible nor attractive," Paul S. Pressler, eBay's chairman of the board of directors, wrote in a statement.
Pressler cited concerns over GameStop's financing, the risks of a combined business, leadership and governance questions, and the potential impact on eBay's valuation and long-term growth.
Pressler laid out the concerns:
eBay's standalone prospects,
the uncertainty regarding your financing proposal,
the impact of your proposal on eBay's long-term growth and profitability,
the leverage, operational risks, and leadership structure of a combined entity,
the resulting implications of these factors on valuation,
and GameStop's governance and executive incentives.
Recall that Cohen's $56 billion bid for eBay was, in his own words, funded by "half cash and half stock." Yet, when Cohen joined CNBC's Andrew Sorkin for an interview early last week, he struggled to explain the deal math, given that GameStop's market capitalization is only a fraction of eBay's.
Here's the most contentious part of Ryan Cohen's CNBC Squawk Box interview about the GameStop-EBAY acquisition.
— Reese Politics (@ReesePolitics) May 4, 2026
This is a HEATED back and forth, uncommon for financial news. $GME
Sorkin, at one point is in disbelief at RC's repetitive answering to his question. pic.twitter.com/MWAbYWStlp
Even Michael Burry exited his GameStop long position, saying the $56 billion cash-and-stock acquisition would likely require too much debt and would no longer align with his original thesis for the stock.
Burry wrote on X: "Wall Street does indeed mistake debt for creativity, and does so constantly. I, of all people, should have known."
Why yes they did: "GameStop's Highly Confident Letter from TD is contingent on the GME/Ebay combination being investment grade... and Moody's said it won't be": David Faber, CNBC https://t.co/uhZbUF72qn
— zerohedge (@zerohedge) May 7, 2026
GameStop's 13D filing shows that derivatives, or call options, represent 99.89% of its $EBAY position, equivalent to 22,176,000 shares. The actual common stock owned by GameStop amounts to about 25,000 shares, or 0.11% of the total position.
Polymarket odds of a GME-eBay marriage...
GameStop shares are down 4% in premarket trading, while eBay is down around 1%.
Related:
The conversation on institutional desks has centered on what Morgan Stanley analyst Nathan Feather noted last week: the key question in any hypothetical acquisition scenario is financing, as eBay's market cap is roughly four times GameStop's. He added, "We are also initially skeptical of potential synergies."