eBay has rejected a proposed $56 billion takeover bid from videogame retailer GameStop, describing the offer as “neither credible nor attractive” amid concerns about the deal’s financing structure.
The proposed acquisition, valued at $125 per share, was structured as a half-cash, half-stock transaction. However, analysts and investors have questioned whether GameStop, which currently holds a market valuation of around $12 billion, would be capable of completing a deal for a company worth nearly four times that size.
Following the announcement, eBay shares fell around 1 percent in pre-market trading to approximately $107 per share, remaining significantly below the proposed offer price. Meanwhile, GameStop shares declined nearly 4 percent.
eBay also used the announcement to highlight its ongoing turnaround strategy, which the company said has helped strengthen growth and operational performance in recent quarters.
Market observers have expressed skepticism about the transaction’s feasibility due to the scale of required financing and the significant valuation gap between the two companies.
The proposed bid comes amid continued volatility surrounding GameStop, which has remained closely watched by retail investors since becoming a major meme stock during the 2021 trading frenzy.
