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GameStop, the video game retailer turned meme stock phenomenon, just tried to buy eBay for roughly $56 billion. eBay’s board said no, and they weren’t exactly polite about it.
The unsolicited proposal valued eBay at approximately $125 per share. The board, led by chair Paul Pressler, unanimously rejected the bid, describing it as “neither credible nor attractive.”
The quiet stake that preceded the loud bid
This wasn’t a bolt-from-the-blue proposal. GameStop has been steadily accumulating an approximately 5% stake in eBay since February, building a meaningful position before lobbing the takeover offer over the wall.
Why eBay isn’t interested
eBay’s rejection wasn’t ambiguous. When a board uses phrases like “neither credible nor attractive,” they’re doing two things simultaneously: questioning both the buyer’s ability to close and the valuation itself.
The “not credible” portion raises implicit questions about GameStop’s financing capability. GameStop has been sitting on a notable cash reserve after multiple equity raises during the meme stock era, when it sold shares at inflated prices to shore up its balance sheet. But there’s a significant gap between having a healthy treasury and financing a deal of this magnitude.
The “not attractive” portion is simpler to parse. eBay’s board believes the company is worth more operating independently than what GameStop put on the table. At $125 per share, the board apparently sees meaningful upside that isn’t captured in the offer price.
The meme stock to dealmaker pipeline
Both GameStop and eBay have dipped their toes into the digital assets space in various ways over the past few years. eBay has explored NFT listings on its marketplace, and GameStop briefly operated an NFT marketplace before shuttering it. But this particular bid had nothing to do with crypto, NFTs, or blockchain technology. No tokens were involved. No on-chain components were proposed.
GameStop already holds that roughly 5% stake, which gives it options. It could attempt to rally other shareholders, push for board seats, increase its position, or simply walk away.
For eBay shareholders, a rejected bid can still function as a floor for the stock price, since it signals that at least one buyer sees value at $125 per share. eBay investors should be watching for any amended SEC filings that indicate changes to GameStop’s position or stated intentions.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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