GameStop stock falls as eBay rejects $56B takeover bid

eBay’s board unanimously rejected GameStop’s $56 billion unsolicited takeover offer, labeling it 'neither credible nor attractive' due to financing concerns and operational risks. The deal, proposed at $125 per share in cash and stock, faced skepticism from investors and analysts who questioned GameStop’s ability to secure the remaining funding after a $20 billion commitment from TD Bank and $9 billion in cash reserves. The rejection came despite GameStop’s market value being around $11 billion, far below the deal’s scale. eBay’s letter highlighted uncertainty over financing and the challenges of merging the two businesses, emphasizing confidence in its standalone growth strategy. GameStop CEO Ryan Cohen had earlier claimed the financing details were available on the company’s website, though his CNBC appearance last week drew criticism for vague responses on the plan. eBay shares slipped about 1% in premarket trading, while GameStop’s stock declined roughly 3%. Analysts had already priced in limited downside following the rejection, suggesting the market expected the deal to fail. The failure marks a setback for Cohen’s acquisition ambitions and raises questions about GameStop’s future M&A strategies. Investors remain skeptical about GameStop’s ability to fund future deals, particularly after the eBay bid’s collapse. The company’s stock had surged earlier when the takeover was announced, but the rejection has erased those gains, signaling a credibility reset for Cohen’s leadership in large-scale mergers. eBay’s decision to reject the offer leaves both companies to refocus on their independent operations, though future bids could reintroduce deal-related uncertainty.