EBay has rejected an unsolicited $56 billion offer to purchase the company put forward by retailer GameStop, calling the bid “neither credible nor attractive.” GameStop announced its intent to purchase 100% of eBay’s stock for $125 per share on May 3, 2026. This price is 46% above eBay’s recorded share value on February 4, 2026. However, the bid wasn’t taken seriously by those with financial knowledge of the situation. Not only is this price overinflated, but eBay’s value is much higher than that of GameStop’s, raising questions about how it could even afford or manage the acquisition.
The retailer saw a spike in its share price in 2020 when GameStop became a meme stock, with thousands of individuals purchasing stakes in the company just as it was predicted to fold. Ryan Cohen was one of the key figures of the movement during this period, purchasing a 12.9% stake in GameStop before the end of the year. Known as the Meme King, he went on to become CEO in 2021, opting not to take a salary for his role but instead receiving a 9% stake in the company. Essentially, Cohen only earns money for his work if GameStop increases in value.
EBay Rejects GameStop Acquisition Bid
Paul Pressler, chair of eBay’s board of directors, has issued a public statement declining the GameStop bid. “The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it.” Pressler writes. “We have concluded that your proposal is neither credible nor attractive.” Further, the statement outlines the reasons why eBay does not feel confident in the offer, including the perceived impact on the company’s future growth and profit, and uncertainty over GameStop’s financing proposal. Cohen’s initial offer included combining GameStop and eBay to challenge Amazon’s market dominance, but eBay says it doesn’t find the idea to be feasible.
The proposal from GameStop was carried out unconventionally. EBay claims that the acquisition bid was not only unsolicited but that GameStop had not even been in conversation with the online auction site before the offer was made. Further, before the public statement was released, Cohen claimed that GameStop wouldn’t be stopped by eBay’s rejection, instead initiating a hostile takeover. As people asserted that GameStop wasn’t in a financial position to purchase eBay, Cohen began auctioning off items on the site in what appeared to be a marketing stunt. The insincerity of Cohen’s actions led people to believe that the Meme King is just using the acquisition bid to live up to his name.
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The motivation behind Cohen’s acquisition proposal remains unclear. While GameStop stock initially rose slightly following the announcement, it has since dropped below the pre-proposal price. This is in no small part due to Ryan Cohen’s disastrous appearance on CNBC, where he appeared evasive about questions concerning his ability to fund the acquisition. Conversely, eBay’s stock price has increased and is up over 12% from where it was 30 days ago. Despite this, it is still well below the inflated $125 per share that Cohen claimed GameStop would pay.
Further, Cohen’s threat of a hostile takeover is likely as serious as his initial acquisition proposal and his selling of GameStop’s goods on eBay. Despite this, he has proven that he is willing to take things beyond what is financially or logically sensible and has the personal wealth to fund his ambitions. It’s unclear what the future holds for this curious situation.
- Date Founded
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January 1, 1984
- Headquarters
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Grapevine, Texas, United States