CoinDesk
EBay’s board on Tuesday rejected GameStop’s $56 billion half-cash, half-stock takeover offer as “neither credible nor attractive,” per Reuters, citing doubts around financing and a preference for the company’s standalone trajectory. GameStop had pitched roughly $9.4 billion in cash and liquid investments alongside up to $20 billion in debt financing from TD Bank, but the debt package is contingent on the combined entity maintaining an investment-grade rating — a condition Moody’s has already warned the deal would jeopardize.
GameStop shares fell about 4% on the news while eBay slipped roughly 1% to $107 in pre-market trading, still well below the $125-per-share offer. The market has priced skepticism since the bid surfaced, with eBay trading persistently below the proposal price.
Why it matters
GameStop holds roughly $368 million of bitcoin exposure via a covered-call options strategy, having shifted nearly all of its 4,709 BTC to Coinbase Prime earlier this year — a structure that converts the position into a receivable rather than directly held BTC. With the bid rebuffed, chairman Ryan Cohen’s earlier framing that eBay was “way more compelling than bitcoin” is now an open question: raising the offer or going hostile would tighten the financing math, and the BTC stack is one of the few discretionary assets GameStop can point to. Michael Burry, of Big Short fame, sold his GameStop stake after the bid and warned that any eBay acquisition would saddle the retailer with debt and dilute shareholders.
Market impact
For GameStop, the next move is binary — walk away, sweeten the offer, or take the fight directly to eBay shareholders via a proxy contest. The bitcoin position won’t fund the deal on its own, but it gives Cohen leverage to argue liquidity is in place. The bigger structural read is what a credit-negative deal would do to TD Bank’s participation terms, since a hostile bid would almost certainly blow past the investment-grade covenant and force GameStop to find alternative financing — or lean harder on the BTC receivable.
Frequently asked questions
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Why did eBay reject GameStop’s $56 billion takeover bid?
EBay’s board called the half-cash, half-stock offer “neither credible nor attractive,” citing doubts around financing and arguing the company is better positioned under its current management and strategy.
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How would GameStop fund the eBay acquisition?
GameStop pitched roughly $9.4 billion in cash and liquid investments plus up to $20 billion in debt financing from TD Bank. The debt package is contingent on the combined company keeping an investment-grade rating, which Moody’s has warned the deal would jeopardize.
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How much bitcoin does GameStop hold?
GameStop has roughly $368 million of bitcoin exposure via a covered-call options strategy. The firm shifted nearly all of its 4,709 BTC to Coinbase Prime earlier this year, converting the position into a receivable rather than directly held BTC.
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Why is Michael Burry’s exit significant for GameStop’s bid?
Michael Burry, the investor made famous by The Big Short, sold his GameStop stake after the takeover bid and warned that buying eBay could saddle GameStop with debt and dilute shareholders — adding to existing investor skepticism about the deal.
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What happens next after eBay’s rejection?
GameStop can walk away, raise the bid, or take the fight directly to eBay shareholders via a proxy contest. A higher or hostile bid would almost certainly blow past the investment-grade covenant on the TD Bank debt package and force GameStop to find alternative financing.
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