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Key takeaways

  • eBay has rejected Ryan Cohen’s 56 billion dollar takeover bid, deeming it unrealistic.
  • There are concerns about the financing of the proposal due to the huge difference in size between eBay and GameStop.
  • Cohen’s plan is to merge GameStop’s physical stores with eBay’s online platform for authentication and fulfilment services.

eBay has rejected the 56 billion dollar (48 billion euro) takeover bid from GameStop CEO Ryan Cohen, labelling the unsolicited offer “not credible and unattractive”. Cohen’s proposal offered 125 dollars (107 euros) per eBay share, half in cash and half in GameStop shares, representing a premium of around 20 per cent compared with eBay’s closing share price.

Financing concerns

Cohen’s plan has, however, sparked concern on Wall Street because of the significant financial imbalance between the two companies. GameStop, currently valued at around 10 billion dollars (8.5 billion euros), would need to raise about 20 billion dollars (17 billion euros) in loans to finance the acquisition. Although Cohen expects 2 billion dollars (1.7 billion euros) in cost savings within twelve months of completing the deal, he has not clearly explained how he plans to fund such a massive transaction.

eBay far surpasses GameStop in both scale and reach. The online marketplace has more than 136 million active users worldwide and generates annual gross merchandise volume of around 80 billion dollars (68 billion euros). In 2025, eBay booked revenue of 11.6 billion dollars (9.9 billion euros), mainly from sales commissions, supplemented by income from advertising and payment processing fees.

GameStop’s physical presence

GameStop, by contrast, is heavily reliant on its network of physical stores. With roughly 2,200 outlets in the United States, France and Australia (after closing 227 shops last year), GameStop generated 3.6 billion dollars (3.1 billion euros) in revenue in the twelve months to 31 January, mainly from the sale of games, consoles and collectibles.

Cohen wants to leverage GameStop’s physical footprint to bolster eBay’s platform. He proposes using the store locations to authenticate collectibles sold on eBay and to serve as logistical hubs for shipping and fulfilment. The strategy is aimed at combining GameStop’s bricks-and-mortar network with eBay’s extensive online marketplace. (fc)

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