eBay rejected a cash-and-stock takeover bid from GameStop on May 12, 2026 [6].

The move signals a major roadblock for GameStop CEO Ryan Cohen's strategy to expand the gaming retailer into a broader e-commerce powerhouse. By dismissing the offer, eBay has questioned the financial viability of a merger that would have fundamentally reshaped the online marketplace landscape.

Reports on the exact size of the bid vary across sources. The New York Times reported the offer at $55 billion [3], while CNBC cited $55.5 billion [1] and USA Today reported $56 billion [4]. eBay leadership dismissed the proposal as "neither credible nor attractive," an eBay spokesperson said [4].

The rejection centered on GameStop's ability to finance a deal of this magnitude. eBay expressed doubts regarding the funding structure and the potential impact on the combined entity's financial standing. A Bloomberg analyst said that the combined company may struggle to obtain an investment-grade credit rating given the high debt levels [5].

These concerns regarding debt contrast with some internal financial assessments of the retailer. Other reports indicate GameStop maintains a strong balance sheet with more than $9 billion in cash [7] against approximately $4 billion in long-term liabilities [7]. Despite these reserves, the sheer scale of a $55 billion to $56 billion acquisition creates a leverage risk that eBay deemed unacceptable [1, 4].

The bid would have combined GameStop's physical retail footprint and gaming focus with eBay's global digital infrastructure. However, the gap between GameStop's available liquidity and the total cost of the acquisition remained a primary point of contention for eBay's board.

“"neither credible nor attractive."”

This rejection highlights the difficulty smaller, volatile companies face when attempting hostile or aggressive takeovers of established tech giants. Even with significant cash reserves, the risk of losing an investment-grade credit rating can be a deal-breaker for a target company, as it increases the cost of borrowing and destabilizes corporate valuation.