eBay has formally rejected GameStop’s $56 billion takeover attempt, with its board dismissing the proposal as “neither credible nor attractive” and highlighting concerns over its structure and funding. The decision now leaves GameStop considering whether to abandon the bid, revise its terms, or pursue a more aggressive approach with shareholders.
The outcome was widely expected. Since the offer became public, eBay shares have traded well below the proposed $125-per-share price, reflecting market skepticism over the deal’s chances of completion. In its response, eBay’s board reiterated confidence in the company’s current strategy while questioning the viability of the financing package.
GameStop’s bid is structured as a mix of cash and stock, backed by roughly $9.4 billion in available liquidity and up to $20 billion in debt financing from TD Bank. However, that debt is contingent on the combined company maintaining an investment-grade credit rating—an outcome that remains uncertain. Moody’s has already flagged the transaction as credit negative for eBay, and any attempt to increase the offer or go hostile could further strain the financing.
CEO Ryan Cohen has previously suggested that acquiring eBay would be “more compelling than bitcoin,” raising the possibility that GameStop could tap its bitcoin holdings to help fund the deal. While such a move would not be sufficient on its own, it represents one of the few flexible assets the company could deploy to strengthen its bid.
Investor reaction has remained cautious. eBay shares slipped around 1% to about $107 ahead of Tuesday’s open, still well below the offer price, while GameStop shares dropped roughly 4%.
The proposal has also faced internal criticism. Michael Burry, known for The Big Short, exited his position following the announcement and warned that a deal of this scale could burden GameStop with significant debt and dilute existing shareholders.
