GameStop (GME) Faces Uphill Battle After eBay (EBAY) Rejects $56 Billion Unsolicited Bid

GameStop CEO Ryan Cohen's unsolicited $56 billion bid for eBay was rejected by the e-commerce company's board, who called the offer "neither credible nor attractive." The proposal in early May offered $125 per share, split equally between cash and stock, with the cash portion relying on GameStop's $9.4 billion in reserves and a non-binding debt commitment of up to $20 billion from TD Securities. Cohen's path to acquiring eBay, a company nearly five times GameStop's size, faces long odds. Options include a tender offer directly to shareholders or a proxy fight to replace the board, but major index-fund holders Vanguard, BlackRock, and State Street own over 22% of eBay and are unlikely to support a hostile bid. GameStop currently holds just 0.006% of eBay's common stock outright, with additional economic exposure via derivatives that lack immediate voting rights. eBay shares have risen 32% this year to a roughly $51 billion valuation, while GameStop stock is down about 70% since Cohen became chairman in June 2021. Analysts characterize the pursuit as a slow, low-probability campaign that may rely on public pressure rather than financial firepower.