The Trump administration’s plan for a “Golden Dome” national missile defense system could cost more than $1 trillion to develop and operate over the next two decades, according to an estimate by the nonpartisan Congressional Budget Office (CBO).

The CBO on Tuesday published a report which estimated that developing, deploying and operating a Golden Dome missile defense in line with what President Donald Trump outlined in his executive order would cost about $1.2 trillion over 20 years. 

Per the order, the Golden Dome would be designed to defend against ballistic, hypersonic and cruise missiles, as well as other aerial threats. It would cover the entire U.S., including Alaska and Hawaii, with the capacity to engage a regional adversary or a small-scale attack by a peer, though it could be overwhelmed by a full-scale attack by a peer or near-peer adversary, CBO said.

In the report, the CBO considered a national missile defense system with four layers of interceptors, including a space-based layer, two wide-area surface layers – including an upper layer and a lower layer, and a surface-based regional sector layer. 

HOW MUCH WILL TRUMP’S ‘GOLDEN DOME’ MISSILE DEFENSE SYSTEM COST?

The Golden Dome would build off capabilities like the Aegis Ashore Missile Defense System. (Ashley Whitney/DVIDS)

It would also include additional sensors, communication systems, and battle management systems to coordinate the collective action between the system’s layers.

The most expensive portion of the Golden Dome system would be the space-based interceptor layer, which the CBO said would account for about 70% of acquisition costs and 60% of total costs.

Acquisition costs for the Golden Dome system as a whole would total a little over $1 trillion over the 20-year period, while average operation and support costs would average more than $8 billion per year.

US NATIONAL DEBT SURPASSES SIZE OF THE ECONOMY FOR FIRST TIME SINCE WORLD WAR II

The THAAD missile defense system is a mobile system deployed around the world that has some of the capabilities sought in the Golden Dome system. (Lockheed Martin)

The CBO’s estimate notes that there are substantial uncertainties about how quickly components of a national missile defense system could be deployed. 

CBO’s operation and support costs are based on a 20-year period starting in 2028 for surface-based systems and in 2030 for space-based systems. It noted that operation and support costs are likely to be slightly higher if deployments occur later.

US NATIONAL DEBT BREACHES $39 TRILLION MILESTONE FOR FIRST TIME AMID SPENDING SURGE

CBO said there was substantial uncertainty about the timelines to acquire Golden Dome equipment. (Lockheed Martin)

CBO noted that the director of the Office of Golden Dome for America in recent public statements estimated the cost of the program’s objective architecture would cost $185 billion to deploy over the next decade.

The White House’s 2027 budget request documents call for the Golden Dome for America Fund to receive an average of $15 billion per year for the next five years.

As a result, CBO noted the difference “raises the possibility that either GDA’s objective architecture is more limited than CBO’s notional NMD system or DoD expects funding from other accounts to contribute to GDA (or both).”

GET FOX BUSINESS ON THE GO BY CLICKING HERE

CBO added that because of the “limited information available about the Administration’s planned NMD architecture, a direct comparison of DoD’s and CBO’s NMD systems and their costs is difficult,” as many aspects of the plan could ultimately differ from those of its analysis or the objectives of the executive order.

NEW YORK — GameStop’s audacious $56 billion bid to acquire eBay appeared all but dead Wednesday after the online marketplace formally rejected the unsolicited offer, though CEO Ryan Cohen signaled he may not walk away quietly, leaving a narrow path for a prolonged proxy fight or sweetened proposal.

eBay’s board delivered a blunt dismissal Tuesday, calling GameStop’s non-binding proposal “neither credible nor attractive” in a strongly worded letter to Cohen. The rejection cited financing uncertainties, operational risks, leadership concerns and doubts about the combined company’s long-term growth prospects.

The drama began May 3 when GameStop, led by activist investor-turned-CEO Cohen, proposed buying eBay at $125 per share — roughly half in cash and half in GameStop stock. The offer valued the larger e-commerce platform at about $55.5 billion and represented a significant premium to recent trading levels. GameStop had quietly built a roughly 5% stake in eBay beforehand.

Cohen framed the deal as a transformative opportunity to create a retail powerhouse combining eBay’s global marketplace with GameStop’s physical stores and collectibles expertise. He envisioned cost synergies, authentication services through GameStop locations and a stronger challenge to Amazon in secondhand and specialty goods.

Financing questions emerged immediately. GameStop planned to fund the cash portion with its roughly $9.4 billion in cash and investments plus up to $20 billion in debt financing backed by TD Securities. Analysts quickly highlighted potential gaps, dilution risks for GameStop shareholders and challenges securing investment-grade ratings for the merged entity.

eBay’s swift rejection underscored those concerns. Chairman Paul Pressler emphasized the company’s strong standalone performance, recent strategic improvements and confidence in its independent path. The board, supported by financial and legal advisers, saw limited upside in partnering with a smaller, more volatile retailer still transitioning from its meme-stock era.

Market reactions reflected skepticism. eBay shares rose modestly on the initial bid news but stabilized after the rejection. GameStop stock, known for extreme volatility, swung on headlines but showed limited sustained gains, with investors wary of execution risks and potential shareholder dilution.

Cohen has a history of bold moves. As Chewy co-founder, he built a successful e-commerce model before taking the helm at GameStop and steering it toward cash preservation and digital transformation. His activist approach previously delivered results, but acquiring a company nearly four times larger presents unprecedented challenges.

In response to the rejection, Cohen has hinted at taking the fight directly to eBay shareholders. He previously indicated willingness to launch a proxy contest or hostile tender offer if the board remained unreceptive. However, success would require rallying institutional investors and navigating significant regulatory hurdles, including antitrust scrutiny over marketplace concentration.

Analysts remain divided on any remaining chances. Some see a low-probability scenario where Cohen raises his offer, secures additional backing or exploits eBay shareholder discontent over recent performance. Others view the bid as effectively over, predicting eBay will focus on its core business while GameStop pursues smaller acquisitions or organic growth.

The saga has captivated retail investors and meme-stock communities. Social media buzzed with memes, speculation and debates over Cohen’s vision versus practical realities. Supporters cheered the ambition; critics called it unrealistic or a distraction from GameStop’s core challenges in a declining physical retail environment.

Broader industry implications extend beyond the two companies. A successful combination could reshape secondhand markets, collectibles and e-commerce logistics. Failure highlights difficulties smaller players face in pursuing mega-deals amid high interest rates, regulatory caution and valuation gaps.

eBay has strengthened its position in recent years through marketplace enhancements, advertising growth and international expansion. The company reported solid results and returned capital to shareholders, reinforcing its board’s confidence in rejecting external pressure.

For GameStop, the episode underscores Cohen’s aggressive style. The company has amassed significant cash reserves, reducing debt and exploring new revenue streams like collectibles and digital initiatives. Yet its core video game retail business faces structural headwinds from digital downloads and competition.

Wall Street largely views the deal as a long shot from the start. Investment banks questioned the math, while governance experts flagged potential conflicts with Cohen leading the combined entity. Antitrust authorities would likely scrutinize any eventual agreement given eBay’s dominant position in online auctions.

As of mid-May 2026, no new proposals have surfaced. Cohen has engaged publicly, including lighthearted social media posts about selling items on eBay to “pay for eBay,” even briefly facing account restrictions before resolution. The theatrics keep the story alive but do little to resolve substantive financing and strategic concerns.

Observers note parallels to past activist campaigns. Cohen’s track record suggests persistence, yet eBay’s firm stance and superior size tilt odds heavily against completion. A white knight bidder or revised GameStop approach could emerge, but momentum has clearly shifted toward rejection.

The outcome carries lessons for corporate America. Unsolicited bids from cash-rich but smaller entities can generate headlines and short-term stock pops, yet closing requires credible financing, strategic alignment and board support — elements currently lacking here.

For now, the chance of the eBay-GameStop deal closing appears remote. Cohen may continue pressing, but eBay’s rejection marks a significant setback. Investors in both companies will watch closely for the next chapter in this unlikely saga, whether it ends in retreat, escalation or quiet withdrawal.

NEW YORK — eBay Inc. shares traded near $110 Wednesday as investors weighed whether to buy, sell or hold the stock in 2026 following robust first-quarter results and the swift rejection of GameStop’s unsolicited $56 billion takeover bid.

The online marketplace reported strong Q1 2026 performance on April 29, with revenue reaching $3.1 billion, up 19% year-over-year on an as-reported basis and 17% on a foreign-exchange neutral basis. Gross merchandise volume climbed 14% to $22.2 billion, while non-GAAP earnings per share hit $1.66, beating estimates by 5%. The company raised its full-year outlook, signaling confidence amid macroeconomic uncertainty.

eBay’s board formally rejected GameStop’s May 3 proposal for $125 per share — half cash, half stock — on May 12, calling it “neither credible nor attractive” due to financing uncertainties, operational risks and governance concerns. The decision removed immediate takeover premium but left shares elevated on solid fundamentals and potential for strategic alternatives.

Wall Street’s consensus leans “Hold.” Of roughly 30 analysts covering the stock as of mid-May, ratings split with about 14 Buy, 18 Hold and a handful Sell. The average 12-month price target sits around $106 to $115, implying modest downside or limited upside from current levels near $110. Highest targets reach $130; lowest dip to $65.

Positive drivers include eBay’s focus on recommerce, AI-powered tools, advertising growth and international expansion. First-party advertising revenue jumped 33% in Q1. The company continues returning capital aggressively, repurchasing $500 million in shares and paying $139 million in dividends during the quarter. Its Climate Transition Plan and investments in live commerce and authenticated goods position it for sustainable growth.

Challenges persist. eBay faces stiff competition from Amazon, emerging platforms and shifting consumer habits. Valuation concerns have emerged after the recent rally, with some analysts downgrading to Hold citing stretched multiples. Macro headwinds, including inflation and geopolitical tensions, could pressure GMV growth. The rejected bid introduces short-term volatility, though many view it as a distraction from core execution.

Technical signals remain mixed but lean positive in the short term. The stock has gained on three consecutive days as of May 12, supported by rising volume and buy signals from moving averages. Analysts project potential 3-month gains toward $128-$142 in optimistic scenarios, though broader 2026 forecasts range from $86 to $120 depending on the model.

For buyers, the case rests on eBay’s resilient business model and capital return program. At current levels, the dividend yield hovers near 2%, with consistent increases over seven years. Free cash flow generation remains healthy, supporting further buybacks or potential special returns. Long-term bulls highlight AI innovations and marketplace enhancements as catalysts for mid-single-digit growth.

Sellers or cautious holders point to limited organic growth potential and execution risks. Some models forecast only modest total returns through 2030 absent a major catalyst. The failed GameStop bid highlights governance and financing hurdles for transformative deals, potentially capping near-term multiple expansion.

Institutional ownership remains solid, though activist pressure could resurface if performance falters. Ryan Cohen’s GameStop has built a 5% stake and may pursue a proxy fight or revised approach, adding event-driven upside risk. However, eBay’s board has expressed strong faith in its independent strategy.

Broader market context favors selective buying in e-commerce. While growth stocks face rate sensitivity, eBay’s defensive qualities — established user base of 136 million active buyers and diversified revenue — provide ballast. International exposure, representing about 44% of revenue, offers diversification but also currency volatility.

Analysts recommend a balanced approach. Conservative investors might wait for pullbacks toward $100-$105 support levels before initiating positions. Growth-oriented traders could view current momentum as an entry point if Q2 guidance holds. Long-term holders benefit from the dividend and potential for strategic acquisitions, such as the pending Depop deal.

Risks include regulatory scrutiny on marketplace practices, intensifying competition in secondhand goods and potential economic slowdowns affecting discretionary spending. On the upside, successful AI integration, live commerce expansion and stronger advertising could drive beats and re-rate the stock higher.

Portfolio allocation matters. eBay suits income-focused or value-oriented accounts rather than high-growth aggressive strategies. Diversification across tech and consumer sectors mitigates single-stock risk. Options strategies or covered calls can enhance yield for moderate bulls.

As 2026 progresses, eBay’s trajectory depends on execution amid evolving retail dynamics. The company has proven resilient post-pandemic, consistently delivering when macro conditions stabilize. Whether the GameStop episode becomes a footnote or sparks renewed interest remains uncertain.

For now, the consensus tilts toward cautious optimism. Neither a screaming buy nor urgent sell, eBay offers a stable e-commerce play with capital return appeal. Investors should monitor Q2 results, any further takeover developments and macroeconomic indicators before committing capital. The stock’s fate in 2026 will hinge on whether fundamentals can sustain the post-bid glow or if valuation gravity pulls it lower.

Britain’s ambitions to lead the global race for driverless cars took a significant step forward today as the Government inked a formal partnership with Wayve, the London-headquartered artificial intelligence scale-up that has emerged as the country’s standard-bearer in autonomous vehicle technology.

The Memorandum of Understanding, signed between Wayve and the Department for Business and Trade, is designed to deepen collaboration on next-generation self-driving systems and underpin the company’s continued expansion on home soil, a notable vote of confidence at a time when many of Britain’s most promising tech firms have been lured across the Atlantic by deeper pools of capital.

For the SME and high-growth community, the deal is being read as a barometer of Whitehall’s willingness to back homegrown champions with more than warm words. Under the agreement, Government and industry will pool research interests around the responsible deployment of automated vehicles, with the explicit aim of converting Britain’s world-class AI research into commercial reality on its roads, in its factories and across its supply chains.

Officials hope the partnership will act as a catalyst for fresh investment, skilled employment and long-term growth across an automotive ecosystem that has been buffeted in recent years by the transition to electric vehicles, supply-chain disruption and intensifying competition from China and the United States. The signal to international investors, ministers insist, is unambiguous: the UK is open for business and intends to be the destination of choice for ambitious technology companies looking to scale.

Business Secretary Peter Kyle said the agreement demonstrated how the Government’s Modern Industrial Strategy was being put into practice. “This partnership with Wayve shows how government is backing high-growth British scale-ups through our Modern Industrial Strategy to turn world-leading research into real-world deployment,” he said. “By working hand-in-hand with innovative companies, we are accelerating self-driving technology while anchoring jobs, investment and manufacturing here in the UK, making Britain the best place to start, scale and grow a business.”

Alex Kendall, Wayve’s co-founder and chief executive, struck a similarly bullish tone. “I’m delighted to deepen our collaboration with the Department for Business and Trade. We share the Government’s ambition to drive economic growth through the development of the self-driving vehicle sector in the UK and globally,” he said. “Strengthening domestic capabilities will anchor high-value manufacturing in the UK, create thousands of skilled jobs across the supply chain, and support the future of the automotive industry. This is in addition to the transformative benefits to road safety to be gained from self-driving vehicles deployed at scale.”

Founded in 2017 and now one of Britain’s most valuable AI businesses, Wayve has established itself as a pioneer of so-called “embodied AI”, training vehicles to learn from experience rather than relying solely on hand-coded rules and high-definition mapping. The company’s investor roster reads like a who’s who of global capital, and its decision to keep its centre of gravity in the United Kingdom has become a touchstone for the broader debate about retaining home-grown intellectual property.

Science and Technology Secretary Liz Kendall described Wayve as “a true British AI success story, putting the UK at the forefront of self-driving technology.” She added that the agreement would “help secure high-skilled tech and advanced manufacturing jobs in this country” and send a clear signal that “the UK is the best place for ambitious tech firms to start up and scale up.”

The substance of the MoU is squarely aimed at moving automated vehicles beyond the prototype phase and into commercially viable services on British roads. Joint workstreams will cover safety assurance, large-scale simulation and the integration of full self-driving capability into production-ready vehicle platforms, areas where Britain has long held latent expertise but has often struggled to commercialise at pace.

The partnership also reinforces the Government’s ambition to position the UK as a global hub for automated vehicle manufacturing, strengthening domestic supply chains in artificial intelligence, systems integration and advanced automotive hardware. Wayve, for its part, has agreed to share insights from real-world trials with ministers and regulators, providing the empirical foundation for the rules and standards that will govern a national roll-out of self-driving services.

For an automotive sector in the throes of structural reinvention, the implication is significant. Closer collaboration between industry, Government and local partners is intended to revive and evolve British vehicle manufacturing, demonstrating that fast-growing companies can scale at home rather than relocating overseas in search of supportive policy and patient capital.

The announcement comes against the backdrop of the Modern Industrial Strategy, which Whitehall says has already crowded in private investment into priority growth sectors. The Government points to roughly £360 billion in investment commitments, £33 billion in export announcements and 120,000 jobs secured since publication, figures that ministers will be keen to translate into a wider narrative of economic renewal as the political cycle wears on.

For founders, investors and SME leaders watching from the sidelines, the lesson is straightforward enough. When Government and a scale-up of Wayve’s calibre line up around a shared industrial agenda, the message is that Britain intends to compete at the sharpest end of the technology frontier, and that the long-promised marriage between policy and enterprise may, finally, be moving from theory into practice.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.