eBay has rejected GameStop’s $56 billion takeover proposal, with its board concluding the bid was “neither credible nor attractive” and citing concerns over its financial structure. The decision leaves GameStop to consider whether to walk away, improve its offer, or escalate the situation by appealing directly to shareholders.

The rejection, announced Tuesday, was largely anticipated by the market. eBay shares have traded well below GameStop’s $125-per-share offer since the proposal became public, signaling widespread doubt about the deal’s viability. In its response, eBay emphasized confidence in its current strategy and questioned the credibility of the financing behind the bid.

GameStop’s offer combines cash and stock, backed by approximately $9.4 billion in liquidity and as much as $20 billion in debt financing from TD Bank. However, that debt package depends on the combined company maintaining an investment-grade credit rating—a condition that may be difficult to meet. Moody’s has already warned the deal would be credit negative for eBay, and any move to increase the bid or pursue a hostile takeover could further complicate funding.

CEO Ryan Cohen has previously argued that acquiring eBay would be “more compelling than bitcoin,” raising the possibility that GameStop could tap its bitcoin holdings if additional capital is required. While such a step would not fully fund the acquisition, it remains one of the few discretionary assets available to support the bid.

Investor reaction has been cautious. eBay shares slipped around 1% to roughly $107 in premarket trading, still well below the offer price, while GameStop shares dropped about 4%.

The proposal has also drawn criticism from within GameStop’s own investor base. Michael Burry, known for The Big Short, exited his position after the bid was announced and warned that the acquisition could burden GameStop with significant debt and dilute shareholder value.