eBay rejects GameStop CEO Ryan Cohen’s $56 billion bid

eBay has officially rejected GameStop CEO Ryan Cohen’s $56 billion offer. eBay’s board said the unsolicited proposal was turned down after a thorough review with the help of financial and legal advisers. Cohen had suggested he would take the bid to shareholders if it was rejected, saying: “There is nobody more qualified, based on my experience, to run eBay.”

In a response letter to Cohen, published in full, eBay chairman Paul Pressler said the offer was “neither credible nor attractive.” Pressler stated: “The board, with the support of its independent advisers, has thoroughly reviewed your proposal and decided to reject it. We have concluded that your offer is not credible or attractive.”

Reasons for the rejection

The board’s reasons for rejecting the proposal included several factors: 1) eBay’s standalone prospects, 2) uncertainty around Cohen’s financing proposal, 3) the impact of his proposal on eBay’s long-term growth and profitability, 4) the operational risks and leadership structure of a combined company, 5) the implications of these factors for valuation, and 6) GameStop’s governance and executive incentives.

The board remains confident that eBay, under its current management team, is well positioned to drive sustainable growth and deliver value for its shareholders.

About Cohen’s bid

Cohen’s $56 billion bid was an attempt to strengthen eBay as a major competitor to Amazon. He argued that eBay was not generating enough profit and suggested he could deliver $2 billion in annual cost savings within 12 months of closing the deal. Cohen also proposed using GameStop stores to collect and authenticate items from eBay sellers, which could help improve trust in the eBay marketplace.

Even so, there are concerns about how the bid would be financed. GameStop had a total balance sheet of under $10 billion, and Cohen said the offer would be funded partly with cash and partly with stock. The confusion over where the money would come from has raised questions about the feasibility of the takeover.

Claims and reactions

Cohen previously suggested he might rely on investments from Middle Eastern sovereign wealth funds to fill the financing gap, though he did not spell that out during an interview. In an effort to push his goals forward, he has publicly criticized eBay on social media, taking aim at the company’s financial performance and a board member’s social media activity.

Criticism of Cohen has not been limited to public comments. Investor Michael Burry, who sold his entire GameStop stake, has sharply criticized Cohen. Burry has called GameStop a “bad” company that benefits from the meme market, underscoring the doubts many still have about Cohen and GameStop’s long-term strategy.

No case from history

GameStop’s recent history as a company has been turbulent. In 2025, the company had 2,325 locations in the U.S., but by late 2025 it had closed 590 stores. GameStop has repeatedly tried to adapt and develop new revenue streams, including exits from crypto and the launch of NFT marketplaces that were quickly shut down. This points to a broader challenge for GameStop in finding sustainable growth and profitability in today’s market.

Timeline

• May 12, 2026: eBay rejects Ryan Cohen’s $56 billion bid for GameStop, calling it “neither credible nor attractive.”
• May 2026: Cohen suggests he will take the offer to shareholders if the board rejects it.
• Early 2026: GameStop closes more locations as part of a broader cost-cutting strategy while continuing to look for new ways to generate revenue.

eBay’s response to the bid, and the debate that followed about GameStop’s future, highlights the difficult environment both companies are operating in. The rejection is a clear sign that eBay intends to stay the course and pursue further growth without merging with GameStop.