eBay has rejected an unsolicited $56 billion takeover proposal from GameStop (GME), dealing a major setback to GameStop Chief Executive Officer Ryan Cohen and raising fresh doubts about the feasibility of one of the most ambitious deals attempted by a meme-stock-era company.
The e-commerce company said its board had unanimously rejected the proposal, citing concerns over financing uncertainty and operational risks associated with combining the two businesses.
In a letter sent to Ryan Cohen, eBay wrote: “We have concluded that your proposal is neither credible nor attractive.”
The rejection had been widely anticipated on Wall Street, where investors and analysts had expressed skepticism over how GameStop planned to finance a transaction several times larger than its own market value.
eBay shares slipped around 1% in premarket trading on Tuesday, while GameStop declined roughly 3%.
Financing concerns dominate reaction
GameStop had earlier this month proposed acquiring eBay in a deal valued at $125 per share in cash and stock.
Before the offer became public, eBay shares had been trading near $104, giving the company a market value of approximately $45 billion.
By comparison, GameStop itself is currently valued at around $11 billion.
Ryan Cohen said the retailer had secured a commitment letter from TD Bank for up to $20 billion in debt financing.
Combined with roughly $9 billion in cash on GameStop’s balance sheet, the retailer still faced a significant funding shortfall.
That gap quickly became a focal point for analysts and investors, many of whom questioned whether GameStop could realistically secure the remaining financing required to complete the transaction.
In its rejection letter, eBay said there remained substantial uncertainty around the financing structure and the operational integration risks of a combined company.
The company added that it remained confident in its current management strategy and ability to drive long-term growth independently.
CNBC appearance sparks criticism
Investor skepticism intensified following Ryan Cohen’s appearance on CNBC last week, during which he provided limited details on the financing plan despite repeated questioning from interviewers.
“It’s on our website. It’s half cash, half stock,” Ryan Cohen said during the interview.
The response quickly went viral online and became the subject of memes across social media platforms, further fueling debate about the seriousness of the proposal.
Prediction markets also reflected the fading optimism around the deal.
On Polymarket, the perceived odds of Ryan Cohen successfully acquiring eBay dropped sharply after the interview, falling to just above 20% by the start of this week.
Some supporters of Ryan Cohen later argued that subsequent television appearances were more polished and reassuring, though concerns around financing persisted.
Meme-stock following remains loyal
Ryan Cohen has built a large following among retail investors since becoming closely associated with the 2021 meme-stock trading frenzy that propelled GameStop shares to extraordinary highs.
After building his stake in GameStop during the Covid-19 pandemic, Ryan Cohen became a prominent figure among online trading communities that championed heavily shorted stocks.
GameStop appointed him chief executive officer in 2023 as the company sought to reinvent itself beyond its traditional video game retail business.
Earlier this year, Ryan Cohen told The Wall Street Journal that he intended to acquire a major public company as part of efforts to transform GameStop into a broader business beyond video games and collectibles.
Last week, Ryan Cohen also mocked critics of the proposed deal on social media platform X, joking that he had created an eBay account to sell personal belongings “to pay for eBay.”
The listings reportedly included signed baseball cards, a collectible featuring President Donald Trump being sworn into office in 2016, and even a pair of his socks.
Despite the online enthusiasm surrounding the proposal, GameStop shares have now surrendered all gains triggered by the takeover announcement, while eBay shares closed Monday at $108.13, well below the offered takeover price.
The failed bid now leaves investors questioning whether Ryan Cohen will continue pursuing eBay or shift attention toward another acquisition target as he seeks to reshape GameStop’s future.
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