GRAPEVINE, Texas — GameStop Corp. shares fell 0.52% to $23.05 in morning trading Tuesday as Wall Street digested the video game retailer's audacious $56 billion unsolicited bid to acquire eBay, which the online marketplace swiftly rejected as "neither credible nor attractive." The move, spearheaded by Executive Chairman Ryan Cohen, has reignited meme-stock frenzy while raising serious questions about financing, strategy and long-term viability for the once-viral company.

The stock opened near $23.17 after closing Monday at $23.17, down sharply from recent highs near $26. Volume remained elevated as retail traders and institutional investors weighed the high-risk gamble against GameStop's strong cash position and shrinking traditional retail business. The company's market capitalization hovers around $10.3 billion, making the proposed deal nearly four times its current size.

Cohen, who has transformed GameStop from a struggling brick-and-mortar chain into a profitable entity with nearly $9 billion in cash and investments, proposed a half-cash, half-stock transaction valued at $125 per eBay share. eBay's board quickly dismissed the overture, citing concerns over financing, governance and operational fit. The rejection sent eBay shares higher while pressuring GME amid broader market caution.

Cohen's Aggressive Vision

In interviews and public statements, Cohen has doubled down........

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