GameStop Shares Drop 4.7% After eBay Turns Down $56B Takeover Offer

eBay swiftly rejected GameStop’s $56 billion takeover bid, calling it neither credible nor attractive. GameStop shares fell 4.7% in premarket trading. This decision raises questions about what it means for both companies and whether Ryan Cohen will give up or try again.

Most investors were not surprised. Since the bid was announced, eBay’s stock traded well below the $125-per-share offer, indicating market skepticism. The financing was also insufficient, as Ryan Cohen had about $20 billion in debt commitments and $9 billion in cash, still far short of the $56 billion required. eBay cited concerns about financing and merger risks in its rejection letter.

eBay’s board said it stands by its current strategy and management team, explaining that the rejection focused on protecting shareholders’ long-term value.

Now, the main question is what Cohen will do next. Earlier this year, he told the Wall Street Journal that he wants to buy a major public company and turn GameStop into more than just a video game and collectibles store. With eBay’s rejection, that goal is still out of reach. Cohen became popular with retail investors during the 2021 meme-stock surge and became CEO in 2023 because of that support. His next move, whether he renews his pursuit of eBay, targets another company, or steps back, will define the future direction and narrative of GameStop.