Key takeaways:
- Ebay rejected GameStop’s unsolicited offer to acquire the company for approximately $55 billion.
- Ebay’s board cited several reasons why it had made its decision in a letter to GameStop CEO Ryan Cohen, including uncertainty about financing the acquisition.
Citing better prospects as a standalone company and a commitment to its strategy, Ebay rejected GameStop’s unsolicited offer to acquire the company in a deal valued at approximately $55 billion.
In a letter to GameStop CEO Ryan Cohen, Chairman of the Board Paul S. Pressler said Ebay’s board had thoroughly reviewed the proposal, and “We have concluded that your proposal is neither credible nor attractive,” Pressler wrote. The board cited several factors that contributed to the company’s decision, including:
- Ebay’s current prospects as a standalone company.
- Uncertainty about how GameStop would finance its acquisition.
- How the acquisition could impact Ebay’s growth and profitability in the long term.
- The risks to leverage, operations and the leadership structure of a combined entity, as well as how they could impact valuation.
- GameStop’s governance and executive incentives.
“Ebay is a strong, resilient business that has delivered meaningful results over the past several years,” Pressler wrote. “We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience and consistently returned capital to shareholders.”
Ebay has been on an upswing. The company announced in February that it planned to acquire the Depop preloved marketplace in February 2026 from Etsy for $1.2 billion. Ebay’s Q1 revenue was $3.1 billion, a 19% year-over-year increase compared to the same period the previous year, and Gross Merchandise Volume (GMV) increased 18% to $22.2 billion.
“With its differentiated global marketplace and a clear strategy, Ebay’s Board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholder,” Pressler wrote.
Full Text of Ebay’s Response to GameStop
Dear Mr. Cohen,
The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it.
We have concluded that your proposal is neither credible nor attractive. We have taken into account such factors as 1) Ebay’s standalone prospects, 2) the uncertainty regarding your financing proposal, 3) the impact of your proposal on Ebay’s long-term growth and profitability, 4) the leverage, operational risks, and leadership structure of a combined entity, 5) the resulting implications of these factors on valuation, and 6) GameStop’s governance and executive incentives.
Ebay is a strong, resilient business that has delivered meaningful results over the past several years. We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders. With its differentiated global marketplace and a clear strategy, Ebay’s Board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders.
Our team remains focused on executing our strategy and driving our business forward in the best interests of the company, our shareholders, our employees, and millions of buyers and sellers around the world.
Sincerely,
Paul S. Pressler
Chairman of the Board of Directors, Ebay
