eBay has firmly shut down GameStop CEO Ryan Cohen’s surprise push to buy the online marketplace, dismissing the proposal as “neither credible” nor appealing. After several days of review by eBay’s board and its financial and legal advisers, the company made it clear it isn’t interested in selling—and it doesn’t believe Cohen’s plan adds up.
In a letter sent to Cohen and later made public, eBay’s board emphasized that the company believes it’s performing strongly on its own. The message was straightforward: eBay says it has been delivering solid results, refining its strategy, improving execution, upgrading the marketplace and seller experience, and returning capital to shareholders. From eBay’s perspective, that momentum doesn’t justify handing over the keys to an outside buyer—especially one proposing a complex, high-risk transaction.
A major reason for eBay’s rejection comes down to deal structure and financial risk. GameStop’s bid valued eBay at about $56 billion and offered shareholders $125 per share, representing roughly a 20% premium at the time. The offer was framed as a 50-50 mix of cash and newly issued GameStop stock. Under the proposed terms, eBay shareholders would end up owning about 70% of the merged company, with Cohen positioned as CEO.
But eBay’s board signaled that the financing behind the offer looked shaky. GameStop planned to cover the cash portion—about $28 billion—using roughly $9 billion from its own liquidated cash holdings and about $20 billion in debt financing reportedly lined up through TD Securities. eBay argued that combining the companies under that kind of debt load would introduce excessive leverage and elevate risk, something that can quickly become a red flag for both shareholders and the broader market. The potential for heavier debt and higher uncertainty is also the sort of scenario that tends to concern high-profile investors, including those known for warning about systemic financial risk.
While eBay’s answer was a clear “no,” Cohen’s response has been just as blunt in the opposite direction. Speaking publicly about the situation, he indicated he’s not backing off and framed eBay’s resistance as motivation to keep pushing. His comments suggest the attempted acquisition isn’t a one-and-done headline, but the start of a louder, more persistent campaign.
For now, the standoff is simple: eBay is signaling confidence in its current strategy and leadership, and it’s rejecting the idea that a highly leveraged merger improves its outlook. Cohen, meanwhile, is doubling down—despite skepticism about whether GameStop can realistically finance a deal of this size. As this plays out, investors will be watching two key questions: whether Cohen can present a more convincing, fundable proposal, and whether eBay’s strong stance holds if pressure increases.
