eBay officially declined GameStop's $56 billion acquisition offer on Tuesday, describing the proposal as "neither credible nor compelling." Following the announcement, GameStop's stock fell over 4% in premarket trading, while eBay shares experienced a slight decline.

GameStop had previously proposed acquiring eBay at $125 per share, representing a premium of approximately 20% over eBay's stock price at the time. The offer was structured as 50% cash and 50% GameStop stock. However, this ambitious "minnow swallowing the whale" transaction faced market skepticism from the outset, given GameStop's market capitalization of only about $10 billion, which is less than a quarter of eBay's value. To finance the deal, GameStop planned to raise $20 billion in debt, but its ability to secure such financing has been widely questioned.

In the rejection letter, eBay Chairman Paul Pressler stated that eBay as a standalone company has "strong fundamentals," a clear strategic focus in recent years, and effective execution. The board believes the current management team can continue to drive sustainable growth and create long-term value for shareholders. Market data shows that eBay achieved revenue of $11.6 billion in 2025, with 136 million active users on its platform and annual transaction volume reaching $80 billion.

GameStop already holds approximately a 5% stake in eBay. Analysts suggest that following the rejection, GameStop might not rule out launching a proxy fight, attempting to advance the deal by replacing members of eBay's board. GameStop has not yet issued an official response.