eBay Inc. (NASDAQ:EBAY) rejected GameStop Corp.‘s (NYSE:GME) massive $56 billion buyout bid on Tuesday, dismissing the video game retailer’s aggressive takeover attempt as “neither credible nor attractive” in a decisive letter to CEO Ryan Cohen.
Following days of social media drama and market speculation, in a direct letter to Cohen, eBay Chairman Paul S. Pressler outlined the board’s thorough review with financial and legal advisors, ultimately determining the merger would not serve the e-commerce platform’s shareholders.
“The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it,” the letter read. “We have concluded that your proposal is neither credible nor attractive.”
The rejection cited multiple red flags regarding the feasibility of the massive buyout. The board specifically pointed to the “uncertainty regarding your financing proposal,” as well as the “leverage, operational risks, and leadership structure of a combined entity.”
GameStop did not immediately respond to Benzinga‘s request for comment.
Questioning GameStop’s Governance
Beyond financial viability, eBay took direct aim at GameStop’s internal operations. The board noted that its decision factored in “GameStop’s governance and executive incentives.”
This serves as a sharp corporate rebuke to Cohen, who has spent the past week publicly criticizing eBay’s workforce size and corporate culture on social media.
Commitment To Standalone Growth
In shutting the door on the proposed merger, eBay reaffirmed its commitment to its current strategic trajectory. The company emphasized its “differentiated global marketplace” and recent successes in sharpening its focus and returning capital to shareholders.
“eBay is a strong, resilient business that has delivered meaningful results over the past several years,” Pressler wrote. He added that the board is highly confident the company, under its current management team, is “well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value.”
The definitive rejection leaves the ball in GameStop’s court, raising questions about whether Cohen will attempt to escalate the situation further or walk away from the multibillion-dollar bid.
How Has eBay Stock Performed In 2026?
Shares of EBAY have surged by 24.14% year-to-date, while the Nasdaq Composite has advanced by 13.08% over the same period. It closed 0.44% higher on Monday at $108.13 apiece, and it was 0.28% lower in premarket on Tuesday.
Over the last month, EBAY was up 13.34%, and it rose 23.92% over the last six months. Benzinga’s Edge Stock Rankings indicate that EBAY maintains a strong price trend in the short, medium, and long terms, with a poor growth ranking.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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