GameStop Corp. unsolicited offer to acquire eBay Inc.

On 3 May 2026, Ryan Cohen, chief executive of GameStop Corp, announced an unsolicited proposal to acquire eBay Inc. The move followed a period in which GameStop had secretly accumulated a 5 per cent stake in the online marketplace between 4 February and the announcement date. At the time of the bid, GameStop held a market capitalisation of approximately $11.9 billion, significantly smaller than eBay's valuation of roughly $50 billion. The offer valued eBay at $125 per share, representing a 46 per cent premium to its closing price on 4 February 2026. This figure translated into a total transaction value of $55.5 billion.

The proposed consideration consisted of a mix of cash and stock. To support the financing, GameStop highlighted $9.4 billion in cash on its balance sheet and secured a highly-confident letter from TD Securities for up to $20 billion in debt financing. Under the terms of the deal, Cohen would have assumed the role of chief executive of the combined entity. He proposed to take no salary or bonus, with his compensation tied solely to the performance of the merged company. The transaction was structured to address the operational risks and leadership structure of a combined entity, though the size disparity between the two firms remained a notable feature of the proposal.

eBay's board of directors rejected the offer on 12 May 2026. Paul S. Pressler, chairman of the board, signed the rejection letter stating that the proposal was neither credible nor attractive. The board cited several reasons for this decision, including eBay's standalone prospects and the uncertainty surrounding GameStop's financing proposal. Concerns were also raised regarding the impact on eBay's long-term growth and profitability, as well as the leverage and executive incentives associated with the combined company. The board further noted the resulting implications on valuation and the specific governance structure proposed by the buyer.

The deal has since been abandoned following the formal rejection by the target board. eBay continues to operate independently with a gross merchandise volume of $80 billion recorded in 2025. No further action has been taken by GameStop to revise the offer or pursue the acquisition through other means. The transaction remains a closed chapter in the history of both companies, with the board's decision finalising the outcome of the unsolicited approach.