EBay has formally dismissed GameStop’s takeover proposal, calling the unsolicited bid unconvincing and financially uncertain as speculation around the high-profile deal rapidly loses momentum.

In a letter sent to GameStop chief executive Ryan Cohen, eBay chairman Paul Pressler said the company’s board had determined the offer was neither credible nor compelling enough to pursue further. Concerns reportedly centred on the financing structure behind the proposal and the operational risks involved in combining the two businesses.

GameStop stunned markets earlier this month after making an unexpected bid for the online marketplace giant despite being significantly smaller in size. The proposal valued eBay at roughly A$86 billion and included a combination of cash and GameStop shares.

Under the offer, GameStop proposed paying around A$192 per eBay share. Prior to news of the bid becoming public, eBay shares had been trading closer to A$160, valuing the company at approximately A$69 billion. By comparison, GameStop’s own market capitalisation sits closer to A$17 billion.

The proposal briefly sparked enthusiasm among retail investors, with both companies seeing short-lived share price gains after the news emerged. However, confidence around the deal weakened following Cohen’s appearance on CNBC last week, where analysts and investors criticised the lack of detail surrounding financing plans.

When questioned repeatedly about funding arrangements, Cohen largely referred viewers to information already published online, a response that quickly spread across social media platforms and became the subject of internet memes.

GameStop previously stated it had secured a commitment letter from TD Bank for up to A$31 billion in debt financing. However, documents later released by eBay showed the financing depended on the merged company achieving investment-grade credit ratings from at least two major ratings agencies.

While GameStop reportedly holds around A$14 billion in cash reserves, analysts have continued questioning how the company would bridge the remaining funding gap required for the acquisition.

Prediction markets also reflected falling confidence in the deal proceeding. On Polymarket, the probability of Cohen successfully acquiring eBay reportedly dropped sharply after the television interview and fell further following eBay’s rejection.

Despite the setback, Cohen continued publicly discussing the possibility of taking the proposal directly to shareholders if eBay remained unwilling to negotiate.

The GameStop boss also leaned into the online attention surrounding the bid, joking on social media that he had opened an eBay account to sell personal items “to pay for eBay”. Listings reportedly included signed baseball cards and even a pair of his own socks.