eBay Rejects GameStop's $20 Billion Takeover Bid

eBay rejected a surprise takeover bid from GameStop, which analysts had expected due to the vast size difference between the two companies.

GameStop, worth about a quarter of eBay, proposed the deal last week with a commitment letter from TD Securities for around $20 billion in debt financing. eBay cited uncertainty over the financing in its rejection.

In a letter to GameStop Chief Executive Ryan Cohen, eBay's board called the online auction company a strong, resilient business. It pointed to the proposal's impact on eBay's long-term growth and profitability, along with operational risks and the leadership structure of a combined entity. The board also flagged GameStop's governance.

eBay has faced challenges in recent years from competitors including Amazon, Etsy and Temu, but it said its turnaround plan is working. The company's net profit in 2025 reached $418.4 million, up from $131.3 million the prior year despite lower sales.

GameStop gained fame as a meme stock, where retail investors pile into shares of companies shunned by professionals, driving wild price swings. It operates around 1,600 stores worldwide, mostly in the US.

Cohen said eBay would thrive more under his leadership and could even challenge Amazon. He added last week that he would take the offer directly to eBay shareholders if the board said no.

Forrester retail analyst Sucharita Kodali told the BBC the proposal did not seem like a terribly good offer, as it would load eBay with GameStop's debt.