eBay Rejects GameStop’s Acquisition Bid
eBay board chair: GameStop’s May 3 proposal is “neither credible nor attractive.”
eBay announced on Tuesday that it is rejecting GameStop’s unsolicited acquisition proposal after a review with its financial and legal advisors.
Board’s Reasoning
Paul S. Pressler, chair of eBay’s board, addressed the decision in a letter to GameStop CEO Ryan Cohen. He described the offer as “neither credible nor attractive,” citing several concerns:
- eBay’s strong standalone outlook.
- Uncertainty surrounding GameStop’s financing plan.
- Potential negative impact on eBay’s long‑term growth and profitability.
- Other undisclosed strategic factors.
Details of GameStop’s Offer
GameStop submitted a non‑binding proposal to acquire 100 % of eBay at US$125 per share, split evenly between cash and common stock, with full shareholder voting rights. The key points of the bid include:
- GameStop already holds a 5 % economic stake in eBay via derivatives and direct stock ownership.
- The offer represents a 46 % premium over eBay’s unaffected closing price on 4 February (the date GameStop began buying shares) and a 20 % premium over the closing price on the Friday before the proposal.
- GameStop’s market cap is roughly $12 billion, while eBay’s is about $46 billion.
GameStop’s Recent History
Since January 2021, Ryan Cohen has led GameStop, first as Executive Chairman (June 2023) and previously as CEO. The company has faced a challenging fiscal environment:
- Q1 2023 saw a 10 % decline in sales.
- Cost‑cutting measures were implemented, yet GameStop still posted a $300 million loss for the prior fiscal year.
- Since 2019, the retailer has closed more than 800 stores worldwide.
Recent Developments
In May 2025, French‑Canadian entrepreneur Stephen Tetrault purchased Electronics Boutique Canada Inc. from GameStop Global Holdings and rebranded the locations as EB Games Canada.
Source: PR Newswire via @Wario64
