eBay Rejects GameStop’s $125-a-Share, $55B Takeover Bid

eBay rejected GameStop’s takeover proposal, a cash-and-stock offer valued at $55 billion to $56 billion and priced at $125 per share. The company’s board described the proposal as “neither credible nor attractive,” pointing to concerns about how the transaction would be financed and about eBay’s business prospects.

GameStop proposed using its $9.4 billion cash reserve alongside outside financing. The bid included a nonbinding $20 billion financing letter from TD Securities. eBay’s board said the proposal did not present a convincing financing plan and did not reflect the company’s valuation or future prospects. The TD Securities letter does not guarantee funds.

A prediction market that tracks the likelihood of a completed acquisition cut the odds to about 15.5% from roughly 22% a day earlier, reflecting reduced market confidence in the deal as presented. Trading volume around the proposal and related announcements rose as investors reacted to eBay’s rejection.

During the exchange of offers, GameStop CEO Ryan Cohen had his eBay account reinstated after an earlier ban tied to listings flagged by eBay’s automated systems. eBay reversed the ban while the bid activity was underway and indicated the reinstatement was unrelated to the board’s decision on the offer.

Future developments to watch include whether GameStop revises its proposal, whether TD Securities or other financiers firm up commitments, and whether large shareholders seek to reopen talks. Any new filings, financing documents or public statements from either company could change market expectations.

GameStop is a video-game retailer that has accumulated substantial cash under CEO Ryan Cohen and has signaled ambitions beyond its traditional retail model. eBay is an established online marketplace that concluded the current bid did not meet its valuation or governance requirements. Regulatory authorities, including the U.S. Federal Trade Commission, could review any transaction of this size.