GameStop Reaffirms eBay Takeover Bid After Board Rejection

GameStop is not letting go of eBay. GameStop said Friday it intends to continue pursuing its proposed acquisition of eBay despite the online marketplace’s rejection of the unsolicited takeover offer, keeping one of the year’s strangest M&A storylines alive.

The reaffirmation

In a regulatory filing, GameStop confirmed that it remains committed to its approximately US$56 billion cash-and-stock proposal after eBay turned down the offer. The filing offered few new details about how GameStop plans to advance the bid but indicated that additional information about the proposed transaction will be released in the near future.

GameStop has still not filed a formal tender offer after the rejection, leaving the next move dependent on the promised strategic presentation and any updated financing structure.

Why eBay said no

eBay’s board called the proposal neither credible nor attractive, raising objections that included questions about how the deal would be financed, how the combined company would be run, and the structure of Cohen’s compensation.

GameStop, with a market value of roughly $10 billion, is attempting to acquire a company approximately five times its size, a gap that has drawn skepticism from investors and analysts about where the remaining funding would come from.

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Cohen is putting skin in the game

To finance the offer, GameStop cited approximately $9.4 billion in available cash plus additional financing commitments. Cohen’s personal $500 million pledge was designed to combat skepticism about whether GameStop could actually close a deal of this magnitude.

The company has also continued building its position in eBay, with its ownership stake now standing at 7.8%. Chief Executive Ryan Cohen has reportedly waived a potential performance-based compensation package in order to focus on advancing the proposed acquisition, underlining management’s commitment to the deal.

The earnings sweetener

Alongside its acquisition update, GameStop projected adjusted earnings before interest, taxes, depreciation and amortization exceeding $600 million for fiscal 2026, compared with approximately $345.4 million reported for fiscal 2025.

A standalone GameStop generating nearly double last year’s EBITDA strengthens the argument that the company can service acquisition debt. Shares rose 1.4% in premarket trading to $22.07 on the combined update.

Options market and stocks to watch

GME: Watch for elevated implied volatility and continued short-dated call activity as traders position around the next filing or presentation. The renewed commitment to the eBay transaction, stronger earnings expectations and persistently elevated short interest continue to create the potential for significant share price volatility.

EBAY: Watch for any updated board language or defensive measures. With GameStop’s stake at 7.8%, any additional accumulation disclosures could move shares.

AMZN: Watch as the indirect benchmark. Cohen has argued that combining the two businesses would create a stronger competitor to Amazon, so any progress narrative gets priced against Amazon’s marketplace dominance.

Keep an eye on other news and flow as the situation develops.

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