eBay has rejected a $55.5 billion takeover proposal from GameStop, calling the offer “unsolicited” and stating it was “neither credible nor attractive.”

The surprise bid had drawn widespread attention because GameStop is significantly smaller than eBay, leading analysts to question how the company would finance such a massive acquisition.

In a letter addressed to GameStop chief executive Ryan Cohen, eBay’s board defended the company’s current business strategy and rejected the proposal after reviewing multiple concerns.

The board stated that eBay remains a “strong, resilient business” and said its turnaround efforts were continuing to show progress despite increased competition in the online retail market.

eBay has faced pressure in recent years from major e-commerce rivals including Amazon, Etsy, and Temu.

The company also raised concerns about the potential impact of the proposed merger on eBay’s long-term profitability, operational stability, and leadership structure.

Additionally, eBay referenced “GameStop’s governance” as one of several factors influencing its decision to reject the takeover attempt.

GameStop became internationally known during the “meme stock” trading frenzy, where retail investors coordinated online to buy heavily shorted stocks, causing extreme volatility in share prices.

Under Ryan Cohen’s leadership, GameStop has attempted to reposition itself beyond traditional physical video game retailing, exploring digital and e-commerce strategies.

Although eBay has formally rejected the proposal, analysts say the takeover effort may not necessarily be over.

Cohen previously indicated that if the board rejected the bid, GameStop could potentially attempt to take the offer directly to eBay shareholders.

Such a move would likely trigger a highly public and closely watched corporate battle between the two companies.

Investors are now expected to monitor whether GameStop pursues additional negotiations or launches a more aggressive takeover strategy in the coming weeks.