Lead

Video game retailer GameStop has made a $55.5bn (£40.9bn) takeover offer for online marketplace eBay, a bid that was swiftly rejected by eBay's board as "neither credible nor attractive." The unsolicited proposal, announced earlier this month, would see GameStop—a company valued at roughly $12bn—acquire eBay, which has a market valuation of about $46bn, according to multiple reports.

Coverage Comparison

Reports from BBC News, The Guardian, Al Jazeera, and France 24 all confirmed the key details: the bid's value, the market valuations of both companies, and eBay's formal rejection. However, coverage varied in emphasis. Al Jazeera and France 24 highlighted the bid itself, with France 24 noting in a video segment that GameStop's CEO Ryan Cohen believes the combined company could rival Amazon. BBC News and The Guardian focused on eBay's rejection, with The Guardian also reporting on Cohen's difficulty explaining how GameStop would finance the deal, and some outlets noted Cohen's unusual side project—selling personal items on eBay to help fund the acquisition.

Key Claims

  • GameStop offered $125 per share for eBay, split evenly between cash and stock, according to reports from The Guardian and BBC News.
  • GameStop had built up a 5% stake in eBay before making the bid, as reported by Al Jazeera and The Guardian.
  • The offer included a $20bn debt financing commitment from TD Securities, according to BBC News and The Guardian.
  • eBay's board rejected the bid, with Chairman Paul Pressler stating that the proposal was "neither credible nor attractive" and citing concerns about financing, operational risks, and governance, as quoted by Al Jazeera and BBC News.
  • Ryan Cohen said he planned to cut costs at eBay by $2bn within a year of a deal being completed, as reported by BBC News.
  • Cohen said he would become CEO of the combined company and receive no salary or bonuses, being "compensated solely based on the performance of the combined company," according to BBC News.
  • Michael Burry, the investor famous for betting against the housing market, criticized the bid, arguing it would burden GameStop with debt and dilute shareholder value, as reported by multiple outlets.

Perspectives

Proponents of the deal, led by Ryan Cohen, argue that eBay has underperformed and could be revitalized under new leadership, potentially even challenging Amazon. Cohen has stated that eBay "should be worth—and will be worth—a lot more money" and has threatened to take the offer directly to shareholders if the board remains opposed, as reported by The Guardian.

Skeptics, including eBay's board and numerous analysts, question the feasibility of the deal. They point to GameStop's relatively small market capitalization, the lack of a clear financing plan—Cohen notably dodged questions about how the company would fill a $16bn funding gap in a CNBC interview—and the stark differences between the two companies' business models. Morgan Stanley was quoted as saying the two firms have "fundamentally different" operations, while Bernstein said it would be "surprised if anything became of it."

Context

GameStop's bid comes after a turbulent period for the company, which rose to prominence during the 2021 meme stock craze, where retail investors drove its share price up dramatically. Ryan Cohen, who became CEO in 2020, has overseen a turnaround of sorts, with net profit rising to $418.4m in 2025 from $131.3m the year before, despite a decline in sales, as noted by BBC News.

eBay, which launched in 1995, has seen its user base shrink from 175 million in 2018 to 136 million today, amid competition from Amazon and newer platforms like Etsy and Temu. However, eBay's board insists its current turnaround plan under CEO Jamie Iannone is working, noting that its stock has returned 201% since Iannone took over six years ago, according to Al Jazeera.

The offer, which was first reported on earlier this month, has already had an impact on markets: GameStop's shares fell more than 12% after Cohen's CNBC appearance, while eBay's stock has traded below the offer price. As of Tuesday, eBay shares were down 1.3% to $106.68, while GameStop was down nearly 2%. Cohen has not ruled out a hostile takeover, saying he would take the offer directly to shareholders if necessary.

As of now, eBay has confirmed it received the bid but declined further comment. GameStop has not responded to requests for additional details.