GameStop’s Bold $56 Billion eBay Bid Sparks Market Skepticism

GameStop CEO Ryan Cohen has launched an unsolicited $56 billion takeover bid for eBay, offering $125 per share—a 20% premium to its closing price. The market responded tepidly, with eBay shares rising just 6% to $110, signaling deep skepticism about the deal's viability.

The proposed acquisition would be financed through a risky mix of $9.4 billion in cash, $9 billion in stock, and at least $20 billion in debt. GameStop has already accumulated a 5% stake in eBay and secured $20 billion in debt financing from TD Securities, but the leverage-heavy structure has drawn criticism.

Michael Burry, a prominent GameStop backer, exited his position entirely, calling the financing "distressed." The video game retailer, valued at $11–12 billion, is attempting to acquire a company nearly four times its size—a move that could reshape its business but carries significant execution risk.