The owner of struggling EB Games has launched a controversial and highly ambitious attempt to acquire global e-commerce platform eBay, with analysts warning the chances of the deal proceeding remain slim.

Parent company GameStop, which operates EB Games in Australia, is facing scrutiny over its financial position while pursuing the unsolicited US $56 billion takeover bid. The move comes as the retailer continues to struggle domestically, drawing criticism for paying minimal tax in Australia while distributing tens of millions of dollars in dividends to shareholders.

Investor reaction has been swift and divided. Shares in eBay jumped 6% following news of the proposal, while GameStop’s stock fell sharply by 10%, reflecting market skepticism about the feasibility of the deal.

GameStop CEO Ryan Cohen, known for bold and often abrupt strategic moves, claimed the acquisition could transform eBay into a company worth “hundreds of billions of dollars” and position it as a serious rival to Amazon.

However, insiders say the proposal lacks the detail needed to support such claims.

Analysts have been blunt in their assessment. “Any credible offer would require substantial dilution and introduce meaningful execution risk,” said Poonam Goyal and Sydney Goodman, highlighting concerns about how GameStop would finance and integrate a company far larger than itself.

The numbers underscore those concerns. eBay’s valuation has climbed to approximately $48.8 billion following the bid, while GameStop’s market capitalisation has dropped below $11 billion — a fraction of its intended acquisition target.

Under the non-binding proposal, GameStop has offered $125 per share in a mix of cash and stock, representing a 20% premium on eBay’s recent closing price. The company has also quietly accumulated a 5% stake in eBay, signaling serious intent despite doubts surrounding the bid.

Cohen insists the vision is achievable, stating he is “thinking about turning eBay into something worth hundreds of billions of dollars,” and describing the platform as a potential “legit competitor” in the global e-commerce sector.

To support the deal, GameStop says TD Securities has committed up to $20 billion in debt financing. Even so, US analysts and market observers remain unconvinced.

eBay executives have so far declined to engage publicly with the proposal. “Until the Board has further carefully and thoroughly considered the proposal, the company does not intend to comment further at this time,” the company said in a statement.

Skepticism is also fueled by eBay’s recent performance. Analysts at Bernstein note the company is already in the midst of a successful turnaround.

“eBay itself is in the midst of a turnaround — one that is going well,” the firm said. “But any volatility, particularly in key categories like collectibles, could complicate the financials. We see real challenges to structuring this deal.”

With limited detail, significant financial hurdles, and growing analyst doubt, the proposed takeover is shaping up as one of the most contentious and uncertain deals in the current market.