eBay Rejects GameStop's Unsolicited Bid In Scathing Response Letter

eBay Inc. (NASDAQ:EBAY) shares slipped in Tuesday premarket trading after the company rejected GameStop Corp.’s (NYSE:GME) unsolicited $55.5 billion takeover proposal, citing financing uncertainty, valuation concerns, and execution risks.

eBay Rejects GameStop Bid

eBay’s board said the $125-per-share cash-and-stock offer was “neither credible nor attractive” following a review with its financial and legal advisors.

Chairman Paul S. Pressler said the board considered eBay’s standalone growth prospects, uncertainty around GameStop’s financing plan, leverage and operational risks, valuation implications, and GameStop’s governance structure.

Financing Concerns Drive Skepticism

GameStop unveiled the bid on May 3, offering a transaction split evenly between cash and stock.

The company said it had accumulated a 5% economic interest in eBay and secured a TD Securities “highly confident” financing letter for up to $20 billion, supplementing its roughly $9.4 billion in cash and liquid investments.

Investors and analysts questioned the deal’s feasibility given GameStop’s smaller market capitalization and the lack of fully committed financing.

Steve Eisman said eBay would “of course” reject the offer, while Michael Burry reportedly warned that the debt is the problem.

GameStop Synergy Case

GameStop said the combination could deliver $2 billion in annualized cost savings within a year and raise eBay’s diluted GAAP earnings per share from $4.26 to $7.79.

Ryan Cohen, who would become CEO of the combined company if the deal closes, said: “eBay should be worth–and will be worth–a lot more money. I’m thinking about turning eBay into something worth hundreds of billions of dollars.”

Critical Technical Levels to Watch for eBay

The stock remains up 56.35% over the past 12 months, reflecting strong longer-term momentum. At $108, eBay trades above both its 20-day SMA of $104.17 and 200-day SMA of $91.05.

The moving averages remain aligned in a bullish pattern, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA.

That setup typically signals investors continue buying pullbacks, supporting the broader uptrend over time. Momentum indicators remain constructive, with the MACD above its signal line and the histogram positive.

• Key Resistance: $111.50 — sits just above the 52-week high zone ($111.38), a common area where breakouts can fail on first attempt
• Key Support: $87.50 — a prior buyer-defense zone that lines up as a deeper pullback level if momentum fades

eBay Analyst Consensus & Recent Actions

The stock carries a Hold rating with an average price forecast of $108.56. Recent analyst moves include:

• Truist Securities: Hold (Raises forecast to $105.00) (May 4)
• TD Cowen: Hold (Raises forecast to $88.00) (May 1)
• Citizens: Market Outperform (Raises forecast to $120.00) (May 1)

Price Action: Tuesday Premarket Update

Price Action: eBay shares were down 0.90% at $107.16, and GameStop shares were down 4.19% at $22.20 during premarket trading on Tuesday, according to Benzinga Pro data.

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