GameStop refuses to accept rejection

Despite a clear rebuff from eBay's board, GameStop has confirmed that it will continue to pursue its takeover attempt of the e-commerce giant. That's according to Yahoo Finance. CEO Ryan Cohen is standing firm on his vision of transforming eBay into a digital marketplace for gaming-related items – including skins, weapons, and other digital goods with what Cohen describes as "real utility value."

eBay's board rejected the bid, characterizing it as "unattractive," while also casting doubt on GameStop's actual financial capacity to execute a transaction of this magnitude.

GameStop chases eBay for $56 billion – refuses to back down - Bilde 1

A funding gap raises concerns

The core of skeptics' argument is straightforward: GameStop's market capitalization stood at around $10.3 billion when the bid was submitted. The company claims to have a $20 billion financing letter from TD Bank, but offers no explanation for how the remaining amount – approximately $36 billion – would be funded.

A funding gap of more than $36 billion is not a detail – it is the very heart of the matter.

Prominent hedge fund figure Michael Burry reportedly exited his GameStop position after the eBay bid became public, according to research from MarketBeat, citing "debt is the problem" as his rationale.

GameStop chases eBay for $56 billion – refuses to back down - Bilde 2

Strong cash reserves, weak core business

That said, GameStop's financial picture is not entirely bleak. According to the company, it held approximately $8.2 billion in cash and liquid assets as of May 2026, and its fiscal year 2025 results (ending January 31, 2026) showed net income of $418.4 million on revenues of $3.63 billion.

$8.2B
Cash and liquid assets (May 2026)
$418.4M
Net income FY2025

The problems, however, run deeper. Analysts expect GameStop's revenues to fall from $3.88 billion in 2025 to $2.5 billion by 2028, according to Wall Street estimates cited in the research material. The shift to digital game downloads continues to erode the company's traditional business model.

Analysts remain on the sell side

Analyst firm Wedbush Securities has repeatedly emphasized its pessimistic view of GME stock. As recently as June 2025, Wedbush maintained its price target of $13.50, which at the time implied a potential downside of nearly 40 percent from the prevailing share price. Only two analysts actively cover the stock today, and according to the research material, institutional investors shifted from net buying to net selling in the fourth quarter of 2025.

Cohen's ambitions span wide

Ryan Cohen clearly views GameStop's substantial cash reserves as raw material for transformation – whether through acquisitions, buybacks, or dividends. The eBay bid represents the most aggressive version of that strategy, but it remains unclear whether Cohen has the market's confidence to see it through.

With eBay's board continuing to reject the approach, analysts largely skeptical, and a funding gap of historic proportions, the road ahead is far from straightforward – but GameStop is evidently not ready to concede defeat.

Sources: Yahoo Finance, MarketBeat, Seeking Alpha, Wedbush Securities via the research material