eBay has rejected GameStop's unsolicited $56 billion takeover bid, calling it "neither credible nor attractive" in a letter from chairman Paul Pressler seen by Bloomberg. The rejection may now prompt GameStop to take its offer directly to eBay's shareholders or launch a proxy fight to replace eBay's board with one more receptive to the deal.

GameStop's offer of $125 per share represents a 20% premium over eBay's current stock price, structured as half cash and half GameStop stock. However, GameStop's market capitalization sits at just $11 billion compared to eBay's $45 billion, and the company plans to borrow $20 billion to finance the acquisition. When pressed, CEO Ryan Cohen couldn't detail where the additional capital would come from. eBay expressed concerns about the financing and debt burden.

GameStop was one of the original "meme stocks" that experienced a dramatic short squeeze in early 2021. The company has recently pivoted from NFTs to retro gaming while shutting down over 400 US stores to cut costs. CEO Ryan Cohen could receive $35 billion in stock if he meets certain criteria, including growing GameStop's market value to $100 billion. eBay, meanwhile, serves 136 million users who spend $80 billion annually on the platform.