eBay has rejected a $55.5bn (£40.9bn) takeover offer from video game retailer GameStop, calling it ‘unsolicited’ and ‘neither credible nor attractive’, according to the BBC.

Deal Seen as Unlikely from the Start

Analysts had expected the offer to be rejected, as GameStop is significantly smaller than eBay. eBay noted there was ‘uncertainty’ over how the deal would be financed, further casting doubt on its feasibility.

Although eBay has struggled in recent years—partly due to increased competition from online sellers like Amazon, Etsy, and Temu,the company claimed its turnaround plan is working. This includes efforts to boost its digital marketplace and improve profitability.

GameStop’s Rise as a ‘Meme Stock’

GameStop gained attention as a ‘meme stock,’ a term used to describe shares in unloved companies that professional investors bet against, though Retail investors then drive up the price, often causing sharp fluctuations in share value.

In a letter to GameStop’s CEO, Ryan Cohen, eBay’s Board of Directors said the online auction giant was a ‘strong, resilient business.’ The board cited the impact of the proposed deal on eBay’s long-term growth and profitability as a key reason for rejection.

eBay also mentioned the ‘operational risks’ and the ‘leadership structure of a combined entity’ as concerns. The board included ‘GameStop’s governance’ among the factors it evaluated before making its decision.

Cohen stated last week that he would pursue the proposal directly with eBay shareholders if the board rejected it. He said the offer could still be presented to shareholders, despite the board’s refusal.

eBay’s Financial Performance and GameStop’s Size

eBay’s net profit in 2025 rose to $418.4m, despite a decline in sales. This marked an increase from the previous year’s $131.3m, indicating some progress in its financial strategy.

GameStop, valued at about a quarter of eBay, has around 1,600 stores globally, most located in the U.S. Cohen believes eBay could achieve greater success under his leadership and even compete with Amazon.

However, Sucharita Kodali, a retail analyst at research firm Forrester, told the BBC that the proposal did not sound like a ‘terribly good offer,’ as it would saddle eBay with GameStop’s debt. She suggested the financial risks could outweigh potential benefits.

The BBC has approached GameStop for comment on the situation. If the company chooses to proceed with the shareholder route, it could signal a new phase in the ongoing takeover attempt.