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eBay Slaps Down GameStop’s Acquisition Pitch

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GameStop

It looks like the acquisition of eBay by GameStop isn’t going to be easy. Last week, GameStop and its CEO Ryan Cohen put out an offer to purchase eBay in a $55.5 billion deal that was 50% cash and 50% common stock. Since then, we’ve had all sorts of drama including a disaster CNBC interview and an eBay account suspension.

Now, the Board of Directors of eBay have rejected the “unsolicited, non-binding acquisition proposal” calling it “neither credible nor attractive.”

Dear Mr. Cohen,

The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it.

We have concluded that your proposal is neither credible nor attractive. We have taken into account such factors as 1) eBay’s standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on eBay’s long-term growth and profitability, 4) the leverage, operational risks, and leadership structure of a combined entity, 5) the resulting implications of these factors on valuation, and 6) GameStop’s governance and executive incentives.

eBay is a strong, resilient business that has delivered meaningful results over the past several years. We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders. With its differentiated global marketplace and a clear strategy, eBay’s Board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders.

Our team remains focused on executing our strategy and driving our business forward in the best interests of the company, our shareholders, our employees, and millions of buyers and sellers around the world.

Sincerely,

/s/ Paul S. Pressler

Paul S. Pressler
Chairman of the Board of Directors, eBay

We’ll see if that’s the end to this rather bizarre plan, or if Cohen will go Veruca Salt/David Ellison and press harder until he gets what he wants.

GameStop announces $55.5 billion plan to buy eBay. CEO Ryan Cohen goes on CNBC in a Combative Interview

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GameStop

When proposing a multi-billion dollar plan, it’s best to not go on television and come off as combative and unable to answer questions. That tends to not win confidence you can pull it off. But, that’s what CEO Ryan Cohen of GameStop did after announcing a $55.5 billion plan to take over eBay. On March 3, GameStop announced plans to take over the auction/store site, offering $125 a share in a deal consisting of cash and stock. That was a 46% premium to eBay’s February 4 closing price. GameStop has acquired a 5% stake in eBay through derivatives and beneficial ownership of common stock.

GameStop’s deal would consist of 50% cash and 50% GameStop common stock. The deal would be funded by GameStop’s cash and liquid investments, roughly $9.4 billion and third-party acquisition financing of which TD Securities has offered $20 billion.

eBay’s stock climbed 5% on Monday to $109, showing a skeptical reception by investors. GameStop’s market value is $12 billion while eBay’s is $46 billion. GameStop’s stock has risen slightly over a low on May 5 but has dropped since the announced was made.

Cohen is convinced that eBay could be even more valuable focusing on excessive spending by the company. eBay spent $2.4 billion on sales and marketing in 2025 while adding 1 million net active buyers. Cohen states they can deliver $2 billion in cost reductions within 12 months:

  • $1.2 billion from Sales & Marketing. More spend is not producing more users on a marketplace with near-universal brand recognition.
  • $300 million from Product Development. Product Development expense grew 11% in fiscal 2025 against revenue growth of 8%.
  • $500 million from General & Administrative. Consolidated finance, HR, real estate, legal, IT, and professional services across the combined company.

The plan is to also use GameStop’s stores as a national network for authentication intake, fulfillment, and live commerce.

Cohen would serve as the Chief Executive Officer of the combined company… which makes his CNBC interview all the more troubling.

Cohen went on CNBC stating this is just the start and there hasn’t been a discussion with eBay’s management.

For obvious reasons, eBay is a public company, there’s all kinds of perverse financial incentives from the board to the management team. So there’s only one way to approach something like this.

In the interview, Cohen couldn’t go into details, instead referring individuals to the website the company has set up regarding the deal.

GameStop itself has had financial issues, becoming a “meme stock” that drove up its price in 2021. It drove shares up 1,500% in two weeks driven by Reddit. It was trading at about $5 a share before jumping to close to $60 and then eventually back down to about $10 a share. It’s since risen and steady in the $20s range for share price.

GameStop, while mostly known for its video game selection, has pushed heavy into the collectible space. Recently they’ve gone further into buying and selling graded/authenticated collectibles. eBay is a leader in the collectible space and has in recent years attempted to pivot to compete more with live auction sites that have risen in popularity. You can see the crossover between the two businesses and how they’re benefit from each other, but that still doesn’t mean this is a good or wise deal.