eBay dismisses GameStop’s $56 billion proposal, renewing focus on its ties to bitcoin.

eBay has rebuffed GameStop’s $56 billion acquisition proposal, with its board describing the offer as “neither credible nor attractive” and raising doubts about its financing. The rejection leaves GameStop at a crossroads—either abandon the bid, increase its offer, or attempt to take the proposal directly to shareholders.

The decision, announced Tuesday, had largely been priced in by the market. eBay shares have consistently traded below GameStop’s $125-per-share offer since the bid emerged, signaling investor skepticism over whether the deal could be completed. In rejecting the proposal, eBay’s board emphasized confidence in its standalone strategy while pointing to uncertainties surrounding the funding structure.

GameStop’s bid consists of a mix of cash and stock, supported by around $9.4 billion in cash and liquid assets, along with up to $20 billion in debt financing from TD Bank. However, that financing depends on the combined company maintaining an investment-grade credit rating—an outcome that remains uncertain. Moody’s has already warned that the deal would be credit negative for eBay, and any effort to raise the bid or pursue a hostile takeover could further complicate the financing picture.

CEO Ryan Cohen has previously characterized the potential acquisition as “more compelling than bitcoin,” prompting speculation that GameStop could draw on its bitcoin holdings if additional funds are needed. While such a move would not be enough to fully finance the deal, it remains one of the few discretionary assets available to support the bid.

Markets have reacted cautiously. eBay shares slipped roughly 1% to around $107 ahead of Tuesday’s open, still well below the offer price, while GameStop shares fell about 4%.

The proposed takeover has also faced resistance from within GameStop’s investor base. Michael Burry, best known for The Big Short, exited his position following the announcement and warned that acquiring eBay could saddle the company with significant debt while diluting existing shareholders.