eBay rejects GameStop’s $56B takeover offer

In a statement, eBay rejected GameStop’s unsolicited $56 billion takeover proposal, describing the half-cash, half-stock offer as “neither credible nor attractive” and questioning how the transaction would be financed. The statement noted the offer’s structure and funding plan left little room for negotiation.

eBay noted the cash portion would require financing beyond what GameStop’s balance sheet could support. eBay’s market capitalization has ranged between about $20 billion and $30 billion in recent years, making it larger than GameStop.

GlobalData analyst Neil Saunders described the financing plan as a “monetary black hole,” pointing to the gap between the cash needed and GameStop’s available resources.

Under CEO Jamie Iannone, eBay has focused on its core marketplace, investing in categories such as luxury authentication and refurbished goods while trimming businesses it considers non-core. The company acquired NFT marketplace KnownOrigin in 2022 and operates a global platform with hundreds of millions of active buyers.

GameStop has been shifting from a mainly brick-and-mortar video game retailer toward digital offerings. The company launched an NFT marketplace and a crypto wallet in 2021 and 2022, then closed both services this year. GameStop has raised cash through multiple stock offerings and holds a sizable cash balance.

Neither company disclosed specific next steps after eBay’s rejection. The offer leaves open whether GameStop will revise the proposal or pursue other uses for its cash.