eBay rejects GameStop’s $56 billion offer, calling it ‘neither credible nor attractive’
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Online marketplace eBay has rejected an offer from GameStop to buy the company for $55.5 billion, dealing a blow to the video game retailers ambitions to create a rival to Amazon.
After reviewing GameStops proposition, the eBay board had concluded that the proposal was neither credible nor attractive, eBay board chairman Paul Pressler wrote in a letter to GameStop CEO Ryan Cohen Tuesday. In the letter, which was shared with CNN, Pressler said the board had taken the decision after considering eBays standalone prospects, the uncertainty regarding how the deal would be funded and GameStops governance and executive incentives, among other factors.
CNN has reached out to GameStop for comment. The companys shares fell 4.5% in premarket trading.
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GameStops ambitious bid for a company nearly four times its size had already raised several eyebrows, particularly as details on how Cohen planned to pay for the offer remained vague and he seemed to skirt the issue in an interview with CNBC.
In a bizarre twist, it then emerged that Cohen was selling goods on eBay to fund the purchase of eBay. Among the merchandise on offer: a GameStop cap for $4,950 and a similarly branded mug going for $3,151.
GameStops outlandish proposal comes amid something of a revival at eBay, which has pushed to reinvent itself in the face of rising competition from the likes of Walmart, Amazon, Shein and Facebook Marketplace. The companys share price has gained 24% this year.
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Pressler said that eBay, under its current management team, was well-positioned to continue to drive sustainable growth and deliver long-term value for our shareholders.
eBay is a strong, resilient business that has delivered meaningful results over the past several years, he noted. We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders.The-CNN-Wire & 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
