GME, EBAY: ‘Takeover Fight May Just Be Starting,’ Says Morgan Stanley after eBay Rejects GameStop Bid

eBay (EBAY), the e-commerce marketplace company, rejected GameStop’s (GME) unsolicited $125-per-share takeover offer on Tuesday, calling the proposal “neither credible nor attractive.” However, Wall Street analysts believe the story is far from over.

Morgan Stanley said the proposed deal could still move forward in several ways, while Stifel expects GameStop CEO Ryan Cohen to respond to the rejection in the near term.

Morgan Stanley Says the Story May Not Be Over

Morgan Stanley said eBay’s rejection of GameStop’s bid was not surprising, but it believes the takeover saga could still continue in several ways. The firm said GameStop could raise its offer, take the proposal directly to shareholders through a proxy fight, or seek additional financing if shareholders reject plans tied to the deal.

The bank also noted that another bidder could emerge now that eBay is viewed as “in play.” However, Morgan Stanley added that investor support for the current proposal appears weak unless GameStop offers a larger premium and more cash.

Stifel Raises Concerns Over GameStop-eBay Deal

Stifel said eBay’s rejection was expected and noted that Ryan Cohen could still launch a proxy fight. However, the firm questioned whether shareholders would support the deal, citing the large size gap between GameStop and eBay along with major integration risks. Analysts were also skeptical of Cohen’s projected $2 billion in synergies within just 12 months.

Despite the rejection, Stifel expects the battle between the two companies to continue, with investors now watching for Ryan Cohen’s next move.

GME vs. EBAY: Which Stock Has Performed Better This Year?

We used TipRanks’ Comparison Tool to align and compare the two stocks, gaining an in-depth view of how they stack up against each other. EBAY stock has gained about 24% year-to-date, compared to roughly 15% for GME.