eBay Rejects Ryan Cohen’s $56B GameStop Bid

eBay’s board rejected an unsolicited $56 billion cash-and-stock offer led by GameStop CEO Ryan Cohen, calling the $125-per-share proposal ‘neither credible nor attractive.’ The directors cited an unclear financing plan and said the decision sets up a likely hostile contest if Cohen goes directly to shareholders.

Directors noted GameStop’s market capitalization is roughly one-quarter that of eBay and questioned how Cohen would fund a deal of this size. The board flagged an equity-heavy financing path that could dilute existing shareholders and warned of operational risks from combining two retailers with limited business overlap.

Cohen has pointed to a $20 billion debt commitment letter from TD Bank as part of his financing plan, but that letter is described as contingent on the combined company maintaining an investment-grade credit rating. Credit rater Moody’s warned the merger would be credit-negative for eBay because of the additional leverage the combined company would carry.

Over the past year, Cohen raised about $8.8 billion through equity sales and convertible bond offerings. GameStop purchased 4,710 Bitcoin last summer and briefly ranked among the larger public holders of the asset. Cohen has described his consumer retail ambitions as ‘way more compelling than bitcoin’ and has not ruled out selling the company’s Bitcoin holdings to help fund an acquisition. GameStop recently moved its Bitcoin position to Coinbase Prime, fueling speculation a sale may be planned.

Cohen has indicated he may take the $125-per-share offer directly to eBay shareholders, possibly by calling a special meeting or launching a tender offer, which would force a vote despite management opposition. eBay’s directors indicated they would not enter negotiations under the current terms.

GameStop shares rose on renewed retail investor interest after the bid announcement. The coming weeks will show whether Cohen pursues a formal takeover path and how shareholders and credit advisers respond.