eBay Board Rejects GameStop’s $55.5 Billion Takeover Bid

eBay’s board of directors voted unanimously to turn down GameStop’s unsolicited offer to acquire the company at $125 per share. Chairman Paul Pressler communicated the decision in a letter to GameStop CEO Ryan Cohen, stating the proposal lacked credibility and appeal. The board said it weighed eBay’s standalone prospects, the risk of GameStop’s financing plan, and the impact on long‑term growth.

GameStop proposed to pay half the purchase price in cash and half in its own stock while seeking up to $20 billion in debt financing. eBay’s market capitalization is more than four times that of GameStop, which stood around $10.2 billion at the time of the offer. Analysts noted that the cash‑stock mix and debt target did not add up to the $55.5 billion valuation GameStop claimed.

The refusal signals that eBay’s directors see more value in remaining independent than in accepting GameStop’s current terms. It also raises the prospect of a hostile bid, as Cohen has indicated he could take the offer directly to eBay shareholders through a special meeting. Investors will watch whether GameStop revises its financing structure, pursues a contested shareholder vote, or walks away, and how eBay responds to any subsequent pressure.