eBay Rejects GameStop’s $56 Billion Bid as ‘Neither Credible Nor Attractive’

eBay’s board has rejected an unsolicited $56 billion takeover proposal from GameStop, dismissing the cash-and-stock offer led by Chief Executive Ryan Cohen as “neither credible nor attractive” and warning that the financing path remains unclear.

The decision sets up a likely hostile fight. Cohen has indicated he may take the $125-per-share bid directly to eBay shareholders, potentially through a special meeting, if the company’s directors refuse to negotiate.

Berlin, Source: eBay

eBay Cites Financing Doubts and Operational Risk

eBay’s board pointed to uncertainty about how GameStop would finance a deal of this size, given that the video game retailer’s market capitalization is roughly one-quarter that of its target.

Cohen has cited a $20 billion debt commitment letter from TD Bank, contingent on the combined company maintaining an investment-grade rating.

Moody’s has signaled that the merger would be credit-negative for eBay, citing the leverage the combined entity would carry. The board also flagged operational risks from joining two retailers with limited business overlap, alongside the dilution that an equity-heavy structure would impose on existing shareholders.

A Pivot Away From the Bitcoin Treasury

The bid marks a sharp shift for Cohen, who built GameStop’s roughly $8.8 billion war chest through equity sales and convertible bond offerings over the past year. The company purchased 4,710 Bitcoin (BTC) last summer, briefly ranking among the largest publicly traded holders of the asset.

Cohen has since described his consumer megadeal ambitions as “way more compelling than bitcoin” and has not ruled out liquidating GameStop’s BTC treasury to help fund the eBay transaction. The retailer recently moved its entire BTC position to Coinbase Prime, fueling speculation that a sale is in the works.

The bid has also reignited retail trader interest in GameStop, sending shares into a familiarmeme rally.

The coming weeks will reveal whether Cohen pulls the trigger on a tender offer or a formal shareholder push, either of which would put the proposal directly in front of eBay’s owners and force a vote on a deal the target’s directors have already rejected.